Sebi warns two firms for late compliance with MPS norms

Promoter holding in Transformers & Rectifiers and NB Footwear came down to below 75% on June 25 and June 14 receptively

Market regulator Securities and Exchange Board of India (Sebi) on Wednesday warned Transformers & Rectifiers (India) and NB Footwear for delay in compliance with the minimum public shareholding (MPS) requirement.

The promoter holding in Transformers & Rectifiers and NB Footwear came down to below 75 per cent on June 25 and June 14, respectively. The deadline for private companies to meet the minimum 25 per cent public shareholding requirement ended on June 3.

Sebi had passed an interim order against 105 companies for failing to comply with the MPS requirement. Sebi had told each to submit their replies within 21 days, failing which the regulator was to take further action.

In its submissions, Transformers & Rectifiers said that it had undertaken a bonus issue in the ratio 1:9 for its public shareholders on June 18 to comply with the norm and requested Sebi to withdraw its interim order. Meanwhile, NB Footwear said it had opted for an ‘offer for sale’ on June 14 and the promoter’s holding was brought down to 74.91 per cent. It also filed that “the delay in compliance be condoned as the circumstances were beyond its control.”