The firms against whom the restrictions are confirmed are Hindustan Breweries and Bottling, Bombay Rayon Fashions, Gandhidham Spinning and Manufacturing Company, Automobile Products of India and India Sugars and Refineries.
The Securities and Exchange Board of India (Sebi) in June 2013 had imposed various curbs on over 100 firms, including these five firms, their promoters and directors for not achieving the minimum 25 per cent public holding within the June 3 deadline of the same year.
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.
In five separate but similarly-worded orders, the regulator
confirmed the directions issued through the interim order dated June 4, 2013 against the companies.
Consequently, Sebi said that it may also initiate other action, as appropriate in law, against the companies, their directors and promoters. The watchdog noted that even after passing of the June 4, 2013 order, these companies have not taken any steps to comply with the MPS requirement.
It observed that the companies have not complied with the MPS requirements till date and such non-compliance being continuous in nature, it becomes necessary for Sebi, for proper regulation of the securities market, to confirm the directions issued against them.
Similarly, public shareholding of Gandhidham Spinning and Manufacturing Company, Automobile Products of India and Bombay Rayon Fashions stood at 1.18 per cent, 15.29 per cent and 7.9 per cent, respectively for the quarter ended September 2015.