Sebi to initiate adjudication proceedings against 2 cos

Capital markets watchdog Sebi will initiate adjudication proceedings against - Tulive Developers Ltd and Steelco Gujarat Ltd - for failing to meet with the minimum public shareholding norms within the due date.
Tulive had not achieved the requirements through a prescribed method by Sebi. Steelco Gujarat, meanwhile, had met with compliance after a delay of 14 months from the June 3, 2013.
It however revoked the curbs it had imposed on the companies as well as their promoters and directors for not achieving the 25 per cent minimum public holding.
Accordingly in two separate orders, Sebi has referred the matter "for adjudication proceedings".

In the case against Tulive, Sebi said that "the company had the primary responsibility to comply with the minimum public shareholding (MPS) requirement by adopting the methods available to it" by the regulator.
"In case the company was experiencing any difficulty it should have approached Sebi with its proposed method for approval, which the company has clearly failed to do," Sebi added.

According to Sebi, selling stake in the open market by the promoter is not a prescribed mode of compliance by the company to meet the norms.
For Steelco Gujarat, Sebi observed that there was "delay of about 14 months in complying with the MPS requirements by the company".

Previously, through an interim order, Sebi had slapped various curbs on over 100 non-compliant firms, their promoters and directors for not meeting the norms.
It had frozen the voting rights and corporate benefits of promoters/directors of these companies and barred them from holding new position on boards of listed firms, among others.