Sebi revokes directions against Ras Resorts & Apart Hotels

Says the firm is compliant with the stipulated minimum public shareholding level

Sebi today revoked restrictions it had imposed on Ras Resorts & Apart Hotels, its directors and promoters for not complying with the minimum public shareholding norms.

Revoking of curbs follows the company meeting with the minimum public shareholding requirements.

The market regulator in an order today said it did not propose to initiate any further action against Ras Resorts & Apart Hotels, its promoters and directors, as the firm "is now compliant with the stipulated minimum public shareholding level (25%)".

"...Hereby revoke the directions issued vide the interim order dated June 4, 2013 against the company, Ras Resorts & Apart Hotels Ltd, its directors, promoters and promoter group, with immediate effect," Securities and Exchange Board of India (Sebi) said.

In an June 4 order, Sebi had imposed various restrictions on over 100 companies including Ras Resorts & Apart Hotels and their promoters and directors for not meeting the minimum 25% public holding within the June 3 deadline.

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

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

In its submissions to Sebi, Ras Resorts & Apart Hotels said it has undertaken a bonus issue of equity shares wherein had allotted 1.69 shares to its public shareholders on June 26, 2013, for the purposes of complying with the minimum public holding requirement.

Sebi said that "the company has achieved compliance with the minimum public shareholding requirement and that the public shareholders now hold 25.66% in the company".

However, Sebi noted that Ras Resorts & Apart Hotels had delayed in complying with the norms, even when it was under notice for three years for achieving such compliance.

"The company is, therefore, warned for the same and is advised to ensure compliance with all the applicable laws and regulations administered by Sebi that govern its activities in the securities market," Sebi added.