sebi:WTM/PS/56/CFD/DEC/2014
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Facts / Headnote
Directions issued vide the interim order dated June 04, 2013 against Pushpsons Industries Limited are confirmed; order to remain in force till further directions.
Provisions invoked
- s. 19
- s. 21
- s. 12A
Parties
- Pushpsons Industries Limited
Holding
The directions issued against Pushpsons Industries Limited vide the interim order dated June 04, 2013 for non-compliance with minimum public shareholding (MPS) requirements are confirmed. The order shall remain in force till further directions.
Full text
Page 2 of 4 4. In the interest of justice, the Company was afforded an opportunity of personal hearing on July 02, 2014, when its authorised representatives, Mr. Sunil Bansal, General Manager, Finance and Mr. Rakesh Verma, Chartered Accountant appeared and reiterated the submissions of the Company, made vide its letters. Thereafter, the Company also filed its written submissions vide letters dated July 03, 2014 and July 17, 2014, September 19, 2014, wherein it inter alia made the following submissions: a. The modes as prescribed under Clause 40A of the Listing Agreement for meeting the MPS requirement were not applicable in its case as it had tried to convince various categories of investors/ consultants for investing in the Company. However, due to poor business prospects and poor financials of the Company, none of them showed any interest. The Company has no reserves, out of which, it could have declared a bonus issue. b. The non-compliance of MPS norms was beyond the control of the Company. c. The Company has accumulated losses of `2.66 Crores as on March 31, 2013 and the book value of the equity share was `6.19. There is no trading in its shares. d. Absence of export orders, orders received for low prices and the 'not so good' domestic market were the reasons for its losses. e. The Company in the meeting of Board of Directors held on November 09, 2013, had decided to explore the possibility of delisting of shares, however, in the meantime one board member started living a
Page 3 of 4 shareholding as of June 03, 2013. I note from the shareholding pattern of the Company for the period ended June 30, 2013, that the promoters held 82.50% and the public shareholders were holding 17.50%. As per the shareholding pattern of the Company as disclosed to BSE, for the quarter ended June 30, 2014, the promoter holding is at 82.28% and the public shareholding was at 17.72%. 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.
Page 4 of 4 necessary for SEBI, for the proper regulation of the securities market, to confirm the directions issued against the Company, its directors and promoters/ promoter group.
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Source: SecMarx — sebi:WTM/PS/56/CFD/DEC/2014. 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.