Sebi revokes curbs on Monotype in minimum public holding case

Markets regulator Sebi has lifted the restrictions imposed on Monotype India, its directors and promoters for not meeting the minimum public shareholding regulations, after the company complied with the norms.
In an order dated June 17, the regulator said it is revoking the directions issued against Monotype India and its directors and promoters.
The Securities and Exchange Board of India (Sebi), in June 2013, had imposed various curbs on over 100 firms, including Monotype India, its 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.

According to Sebi, Monotype India had made an offer-for sale (OFS) and sold 44,880 shares during May 2016 and had brought down its shareholding to 75 per cent.
BSE has also confirmed that the company is now in compliance with the MPS norms.

"As the promoter's shareholding was brought down to 75 per cent, ... The directions imposed on the company, its promoter/s and directors can now be revoked," Sebi said in an order dated June 17.
Accordingly, Sebi has "revoked the directions issued vide the interim order dated June 4, 2013 and confirmed vide Sebi orders dated July 22, 2014 and January 22, 2016 against the company, Monotype India, its directors, promoters and promoter group."

However, Sebi will scrutinise the shareholding pattern of the company post implementation of amalgamation scheme and listing of the newly allotted shares, in order to be satisfied that the company continues to be compliant with the MPS norms pursuant to such corporate actions.