sebi:WTM/SR/CFD/13/03/2017
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Facts / Headnote
Directions issued vide Interim Order dated June 4, 2013 read with Confirmatory Order dated December 11, 2015 revoked; no further action warranted
Provisions invoked
- s. 19
- s. 12A
- s. 21
Regulations
- Reg. 38
- Reg. 72(1)(c)
Parties
- Bombay Rayon Fashions Limited
- Promoters and Promoter Group of Bombay Rayon Fashions Limited
- Directors of Bombay Rayon Fashions Limited
Holding
SEBI revoked the directions issued against Bombay Rayon Fashions Limited, its Promoters and Promoter Group along with its Directors vide the Interim Order dated June 4, 2013 read with the Confirmatory Order dated December 11, 2015. Bombay Rayon was held compliant with the 25% minimum public shareholding requirement with effect from June 15, 2016.
Full text
Page 2 of 19 v. Rights Issues to public shareholders with Promoters/Promoter Group shareholders foregoing their rights entitlement; vi. Bonus Issues to public shareholders with Promoters/Promoter Group shareholders foregoing their bonus entitlement; vii. Any other method as may be approved by SEBI on a case–to–case basis.”
Page 3 of 19 i. For the purpose of above direction, proportionate promoter/promoter group shareholding shall be computed on the basis of the public shareholding in the company; e.g. if public shareholding in a company after the deadline is less than 25%, say 10%, in such case, the proportionate promoter shareholding would be 30% (i.e. three times the existing public shareholding). Thus the excess promoter/promoter group holding i.e. 60%, shall be frozen till the minimum public shareholding requirement is complied with. ii. In case of more than one entity in the promoter/promoter group in a company, the excess promoter holding for the purpose of taking action shall be computed on a proportionate basis. For illustrating the example above, if there are three promoters; A, B and C with shareholdings of 45%, 35% and 10% respectively; the excess promoter holding of 60% shall be allocated as follows: 1. A: (60% multiplied by [45%/45%+35%+10%]) = 30.00% 2. B: (60% multiplied by [35%/45%+35%+10%]) = 23.33% 3. C: (60% multiplied by [10%/45%+35%+10%]) = 06.67% Total = 60.00%
Page 4 of 19 19. The Board/Audit Committee of these non – compliant companies shall, at the end of each quarter, submit compliance report to the stock exchanges where the shares of company are listed, giving the extent to which compliance has been achieved and the efforts taken therefor. …
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Source: SecMarx — sebi:WTM/SR/CFD/13/03/2017. 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.