Sebi revokes interim order against Agarwals Eye Hospital

Revocation comes after the company informed the regulator that it has issued equity shares under ESPS, and that promoter holding had come down within the stipulated limit of 75%

The Securities and Exchange Board of India (SEBI) has revoked an interim order against Dr Agarwal's Eye Hospital which it issued in June 4, 2013. The revocation comes after the company informed the regulator that it has issued equity shares under Employees Stock Purchase Scheme (ESPS) and the promoter holding has come down within the stipulated limit of 75%.

 

According to the order issued, the hospital firm was one of the 105 listed companies against which the Board has issued an interim order as the Minimum Public Shareholding (MPS) was at 21.77% till the due date of June 3, 2013. The market regulator's action was in the backdrop of its earlier circular seeking the listed companies to comply with the MPS, under which 25% of the shares in the company should be with the public shareholders, as stipulated under the rules 19(2)(b) and 19A of the Securities Contracts (Regulation) Rules, 1957 (SCRR) within the due date of June 3, 2013.

 

The company later informed SEBI that it has completed the Employees Stock Purchase Scheme (ESPS) by issuing 2,00,000 equity shares of 10 each to the employees and the promoter holding in the company has reduced from 78.23% to 74.90% and the company is now compliant with the MPS norms and requested the SEBI to withdraw the directions issued in interim order. SEBI, in its interim order, has directed to freeze the voting rigths and corporate benefits like dividend, rights, bonus shares, split of the promoter group and prohibiting promoter from buying, selling or otherwise dealing in the securites and restraining the promoters and promoter group from holding any new position as a director in any listed company.