Sebi refuses to lift ban on 3 companies in MPS case

Markets regulator Sebi today refused to revoke the restrictions it had imposed on three companies for not complying with minimum public shareholding (MPS) norms.
The companies are Shreevatsaa Finance & Leasing, Kusum Iron and Steel and Herman Milkfoods.
The Securities and Exchange Board of India (Sebi), in June 2013, had imposed various curbs on over 100 firms, including the three companies, their promoters and directors for not meeting 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.

It had also warned the companies of further actions, including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks.
In three separate orders, the regulator has confirmed the directions issued through the interim order in June, 2013 against the companies.

Sebi observed that these companies have not complied with the MPS requirements till date.
Although Herman Milkfoods claimed it had maintained the MPS requirement and public shareholding in the company stood at 33.03 per cent as of June 2013, Sebi said that the company has not submitted anything and neither any disclosures were made in this regard.

The company's public holding stood at 6.53 per cent till March 2013.
As per latest shareholding details, while public shareholding of Shreevatsaa Finance & Leasing stood at 10.38 per cent for the quarter ended June 2013, Kusum Iron and Steel's public holding was 22.11 per cent for the same period.