Sebi partially lifts curbs on Shantivijay Jewels

Market regulator Sebi has partially lifted curbs imposed on Shantivijay Jewels for non-compliance with minimum public shareholding norms, as the firm is in the process of delisting from stock exchanges.
In an June 4 order last year, the Securities and Exchange Board of India (Sebi) had barred promoters and directors of 105 firms, including Shantivijay Jewels, from dealing in securities of their respective firm after they failed to meet the 25 per cent minimum public shareholding requirement.
Noting that Shantivijay Jewels shareholders have approved the proposal of delisting, Sebi said that it was "reasonable and appropriate to modify the directions issued vide the interim order to the extent that the same does not affect or prejudice the efforts of the company/ its promoters' from continuing with the voluntary delisting process".

Accordingly, Sebi said the direction issued in interim order dated June 4, 2013 "stands modified to the extent that it shall not hinder the voluntary delisting process initiated by the company and that its promoters shall be permitted to buy shares of the company held by public shareholders in their offer for delisting".
The company has been asked to complete the delisting process within a period of 5 months and report the outcome within one months' period from the date of delisting.
"Further, the directors who are not part of the promoter group and who are restrained inter alia from selling their shares in the company would be allowed to sell them in the delisting offer," Sebi said.

The market regulator added that the restrictions would be re-imposed immediately if the company fails to delist within the stipulated time.

It, however, said that directions regarding freezing of voting rights and corporate benefits of the promoters and directors as well as restraint on them from holding any new positions in any listed firm "shall continue to be in effect till such time" the company is delisted or has complied with the minimum public shareholding requirements.
The shareholding of the promoters group of REIL Electricals stand at about 98.19 per cent while the public shareholders hold 1.81 per cent in the company.

Having failed in its attempt to comply with the minimum public holding norms, Shantivijay Jewels had decided to delist from the stock exchanges.