SEBI revokes restrictions against Sundaram Clayton, promoters, its directors

Move made because directors, promoters failed to meet 25% minimum public shareholding

The market regulator Securities and Exchange Board of India (SEBI) has revoked its restrictions imposed on Sundaram-Clayton, its directors and promoters for failing to meet the 25% minimum public shareholding. Sundaram Clayton is the holding company of TVS Motor, one of the country's leading two-wheeler manufacturer.

 

Prashant saran, whole-time member of SEBI in his Order said that the company provided detailed explanation for the delay in compiling with the MPS requirements on or before June 3, 2013, the prescribed due date by the Regulator.

 

SCL stated that for the purpose of achieving minimum public holding, the company had undertaken an issue of 12.64 lakh shares through an Institutional Placement Programme (IPP) in July this year and one of its promoters also sold 4 equity shares on July 11, 2013 through Offer for Sale, this was quoted in the SEBI's Order.

 

"Having gone through the same, i note that the company had started taking steps for compliance only from February 2013. If it had taken its compliance with the MPS requirement when it was under notice for three years for achieving such compliance. Considering the above and the fact the company has complied with the MPS norms, though belatedly, i do not propose to initiate further action against the company as contemplated. However the company is warned for its conduct and is advised to ensure compliance with all the applicable lawas and regulations administered by SEBI, in letter and spirit," said in the Order.

 

It was further stated that..."hereby revoke the directions against the company, its directors, promoters and promoter group with immediate effect".