sebi:WTM/PS/54/CFD/JUNE/2016
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Facts / Headnote
Interim order dated June 04, 2013 confirmed against Polson Limited; order to remain in force till further directions.
Provisions invoked
- s. 19
- s. 21
- s. 12A
Regulations
- Reg. 38
Parties
- Polson Limited
Holding
SEBI confirmed the directions issued vide the interim order dated June 04, 2013 against Polson Limited for non-compliance with minimum public shareholding (MPS) requirements. The order shall remain in force till further directions.
Full text
Page 2 of 5 3. The Company filed reply to the interim order vide its letter dated June 17, 2013. The submissions of the Company, in brief, are as under: a. The scrip of the Company is not widely traded. However, the promoters of the Company are serious in achieving the MPS. In this regard, on April 26, 2013, the Company had applied to SEBI for seeking permission for making a rights issue with the promoters being given the right of partial renouncement for the purposes of complying with the MPS norms. However, the same was rejected by SEBI. b. Thereafter, the promoters of the Company had made a proposal for an Offer for Sale (‘OFS’) to BSE. However, the same was turned down by BSE as the quantum of shares being offered under OFS were found to be insufficient. c. The Company is again proposing to make a rights issue, wherein, the promoters would renounce their rights. For the said purpose, the Company has also appointed Merchant Bankers and work has commenced on the offer letter.
Page 3 of 5 2014 in August 2014. Thereafter, the Company decided to issue 14,951 fully paid up equity shares of `50 each on rights basis to the existing shareholders in the ratio of 31 fully paid up equity shares for every 39 equity shares and the Merchant Bankers have submitted the ‘draft Letter of Offer’ with SEBI and BSE on September 30, 2014.
Page 4 of 5 shareholding pattern of the Company for the period ended June 30, 2013, that the promoters held 84.33% and the public shareholders were holding 15.67%. As per the shareholding pattern of the Company as disclosed to BSE, for the quarter ended March 31, 2016, the promoter holding is at 84.33% and the public shareholding was at 15.67%. From the above, it can be seen that the Company was non-compliant with the MPS requirements at the time of passing of the interim order and such non- compliance continues till date.
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Source: SecMarx — sebi:WTM/PS/54/CFD/JUNE/2016. 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.