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Market watchdog Sebi has revoked the curbs it had imposed on telecom operator Tata Teleservices (Maharashtra), its directors and promoters, for non-compliance with minimum public shareholding norms.
The restrictions have been revoked by Securities and Exchange Board of India (Sebi) as the telecom firm has now complied with the 25% minimum public shareholding requirements.
"...Hereby revoke the directions vide the interim order dated June 4, 2013 against the Company, Tata Teleservices (Maharashtra) Ltd, its directors, promoters and promoter group, with immediate effect," Sebi said in its order dated September 4.
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Sebi said it did not propose to initiate any further action against Tata Teleservices as the company has "complied with the minimum public shareholding (MPS) norms, though belatedly".
As per Sebi norms, all listed private sector companies were to achieve minimum public shareholding by June 3, 2013.
Through an order dated June 4, the regulator had imposed various restrictions on 105 non-compliant companies including Tata Teleservices (Maharashtra), their promoters and directors for not meeting the public holding requirement by June 3.
Sebi had also 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.
Further, the regulator had warned the firms of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.
In its submissions to Sebi, the company said that it had undertaken a bonus issue of 5.77 crore shares to the public shareholders on August 10, 2013 for the purposes of complying with the norms.
Consequently, the public shareholders now hold 25.10% as required under the minimum public shareholding norms.
"It was submitted that in order to become MPS compliant, the company had explored various fund raising exercises but could not proceed with any of the initiatives given the poor sentiments on the stock/industry," the order said.
Noting that there was delay on part of Tata Teleservices (Maharashtra) in meeting the norms, Sebi warned the company for its conduct and advised it to to ensure compliance "with all the applicable laws and regulations administered by Sebi, in letter and spirit".
