sebi:WTM/PS/CFD/25/AUG/2013
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Facts / Headnote
Interim order directions dated June 04, 2013 revoked with immediate effect; company warned but no further action initiated.
Provisions invoked
- s. 19
- s. 12A
Parties
- Advance Lifestyles Limited
- Mr. Phoolchand Agarwal
Holding
The Company failed to comply with the Minimum Public Shareholding (MPS) requirements by the prescribed due date of June 03, 2013, but having belatedly complied, the interim order directions dated June 04, 2013 are revoked with immediate effect and no further action is initiated.
Full text
Page 2 of 2 CIR/CFD/DIL/10/2010 dated December 16, 2010. According to the Company, Mr. Phoolchand Agarwal, the Promoter and Director of the company had agreed to reduce his shareholding by 1,29,807 equity shares. Accordingly, an OFS was undertaken by the Company through BSE on May 30, 2013, wherein the promoter was able to sell only 55,011 equity shares as the bids were valid only with respect to 55,011 equity shares. Consequently the promoter holding was reduced from 79.17% to 77.40%. In order to meet the MPS requirements, the company went for another OFS for 74,786 shares on June 24, 2013 at BSE after the statutory minimum cooling period of two weeks. Pursuant to the same, the promoters holding was further reduced to 75% thereby raising the public shareholding to stipulated 25%.
5. From the aforesaid documents, it is clear that the Company has not complied with the MPS requirements on or before June 03, 2013, i.e., the prescribed due date. It is seen that the Company had undertaken the first OFS at BSE on May 30, 2013. Further, the second OFS was completed on June 24, 2013, which was much after the due date, to achieve compliance. This conduct indicates to me that the Company was not serious in complying with the MPS norms well within the due date. Therefore, the Company is warned for its conduct and is advised to ensure compliance with all the applicable laws and regulations administered by SEBI, in letter and spirit. However, considering the fact that the Company has complied with the MPS norms, though belatedly, as observed above, I do not propose to initiate further action against the Company as contemplated in paragraph 18 of the interim order.
6. With the above observations, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(2)(j), 11(4) and 11B thereof and Section 12A of the Securities Contracts (Regulation) Act, 1956, hereby revoke the
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Source: SecMarx — sebi:WTM/PS/CFD/25/AUG/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.