Sebi refuses to lift curbs on Golkonda Engineering

Markets regulator Sebi today refused to revoke the restrictions imposed on Golkonda Engineering Enterprises for non-compliance with the minimum public shareholding (MPS) norms.
The Securities and Exchange Board of India (Sebi), in June 2013, had imposed various curbs on over 100 firms, including Golkonda 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.
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.

According to Sebi, the promoters held 89.63 per cent stake in Golkonda, while the public owned 10.37 per cent the firm is therefore in violation of the norms at the end of September 2015.
It further said that the firm has not complied with the minimum public holding norms till date thereby violating Listing Regulations.

"...Such non-compliance being continuous in nature, it becomes necessary for Sebi, to confirm the directions issued vide the interim order against the company, its directors and promoters/ promoter group," Sebi said in an order.
Accordingly, the markets regulator has confirmed the directions issued through the interim order in June 4, 2013 against Golkonda its directors, promoters and promoter group.

"Further, for proper regulation of the securities market and in view of the continuing nature of the violations committed by the company, Sebi may also initiate other action, as appropriate in law, against the company, its directors and promoters," it said.
The order would remain in force till further directions, the regulator added.