Sebi revokes curbs on Vippy Industries

Asks company to delist in 4 months

Sebi has lifted the curbs it had imposed on Vippy Industries, its directors and promoters for non-compliance with the minimum public shareholding norms, while asking the firm to delist from the bourses within a period of 4 months.

Securities and Exchange Board of India (Sebi) in an order on Tuesday directed Vippy Industries and its promoters to complete the delisting process and ensure that "the company is delisted from the BSE within a period of 4 months".

The company has been asked to file a report informing Sebi of the outcome of the delisting process within a period of 15 days thereafter.

Besides, the market regulator has "vacated with immediate effect" the restrictions it had imposed through the interim order dated June 4, 2013 against Vippy Industries, its directors and promoters.

However, Sebi said the curbs on Vippy Industries and its directors and promoters would be "re-imposed immediately (without the need for passing of a separate order) in case the delisting process of the company is not completed within the period directed...".

On June 4 last year, Sebi had passed an interim order against 105 private sector firms, including Vippy Industries for failure to attain minimum 25% public shareholding within the deadline (June 3).

The regulator had frozen the voting rights and corporate benefits of promoters and directors of these companies and barred them from holding any new position on boards of listed firms and also, among others.

Sebi had also warned of further actions, including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.

The market regulator said Vippy Industries' promoters have made a public announcement dated February 11, 2014 with respect to their delisting offer.