Sebi warns Pushpsons of action for non-compliance of norms

Sebi today warned Pushpsons Industries that further actions could be initiated against it for prolonged non-compliance with minimum public shareholding norms.
The market watchdog, through an interim order in June 2013, had imposed certain restrictions on more than 100 companies, including Pushpsons Industries, for not having minimum 25 per cent public shareholding.
Today, the Securities and Exchange Board of India (Sebi) confirmed the interim order and warned of further actions for non-compliance.
In his order, Sebi Whole Time Member Prashant Saran said the non-compliance has been continuous in nature besides the fact that the company has failed to take concrete steps towards proposed delisting of its shares from the stock market.

"Considering the non-compliance by the company with the minimum public shareholding norms and also the fact that such violations are being continued by them, Sebi may also initiate other action, as appropriate in law, against the company, its directors and promoters," the order said.
According to Saran, the company's public shareholders held 17.50 per cent while promoters had 82.50 per cent at the end of June 2013.

As per shareholding pattern for the quarter ended June 2014, public shareholding stood at 17.72 per cent while that of promoters was at 82.28 per cent.
"From the above, it can be seen that the company was non-compliant with the minimum public shareholding requirements at the time of passing of the interim order and such non-compliance continues till date," the order noted.

In the interim order, Sebi, among others, had prohibited the company's promoters and directors from buying, selling or dealing in securities of the entity except for complying with minimum public shareholding norms.
These restrictions were to be in place till the company ensured compliance.