sebi:WTM/PS/53/CFD/OCT/2013
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Facts / Headnote
Interim order dated June 04, 2013 revoked; company warned but no further action initiated
Provisions invoked
- s. 19
- s. 12A
Parties
- Dalal Street Investments Limited
Holding
The directions issued against Dalal Street Investments Limited, its directors, promoters and promoter group vide the interim order dated June 04, 2013 are revoked with immediate effect, as the Company has now achieved compliance with the minimum public shareholding norms. The Company is warned for its delayed compliance and no further action under paragraph 18 of the interim order is proposed.
Full text
Page 2 of 3 non-promoter shareholders of the Company. Pursuant to the same, the Company's promoters' shareholding was reduced to 57.12% and that the Company is now a 'clause 40A compliant company'. The representatives therefore requested SEBI to remove the name of the Company from the list of non-compliant companies and further requested to lift the restrictions imposed vide paragraph 17 of the interim order and not to take any other action contemplated in paragraph 18 thereof. The allotment of shares was done on July 20, 2013 whereas last date for compliance was June 03, 2013. The Company also made additional submissions vide letter dated September 02, 2013.
Page 3 of 3 the resolution regarding the allotment of equity shares on rights basis was passed. I also note that BSE, vide letter dated May 16, 2013 granted its in-principle approval for listing of equity shares proposed to be issued on rights basis, subject to the fulfilling of all formalities by the Company. As stated above, the shares issued on rights basis have been listed for trading on BSE.
4. I have considered the submissions made by the Company and have perused the documents submitted by it and those on record. The Company has issued 90,074 equity shares to the non-promoter shareholders in the Rights Issue which had opened on June 26, 2013 and closed on July 10, 2013. As per the notice of BSE dated July 25, 2013, the aforesaid shares issued in the Rights Issue, which were allotted on July 20, 2013, were permitted to be listed on the BSE with effect from July 26, 2013. As per the shareholding pattern of the Company as on July 26, 2013, available on the website of the BSE, I note that the public shareholding in the Company is at 42.88%. Though the Company was under a three years' notice for achieving compliance with the MPS norms, I note that the Company has belatedly achieved compliance with rule 19A of the SCRR read with Clause 40A(i) of the Listing Agreement on July 20, 2013 (the date of allotment of additional securities in the rights issue pursuant to which public shareholding had increased).
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Source: SecMarx — sebi:WTM/PS/53/CFD/OCT/2013. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.