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Public shareholding: Sebi lifts curbs on Swaraj Automotives

Press Trust of India  |  New Delhi 

Markets regulator Sebi today lifted the restrictions imposed on Swaraj Automotives, its directors and promoters after the company complied with the the 25 per cent minimum public shareholding norms.

The (Sebi), on July 19, 2017, had ordered freezing of voting rights and all corporate benefits arising out of its excess stake in the company.

Also, it had prohibited the and director of the company from dealing in the shares of except for meeting the minimum 25 per cent public shareholding limit till the time of their compliance to this requirement.

Following this, the firm made four attempts to reduce shareholding resorting to the Offer for Sale mechanism, the (Sebi) said in an order passed today.

The regulator said that the firm's public shareholding as of November 22, 2017 stands at 25 per cent, which is in compliance with the regulatory requirements.

"The mode of compliance has also been adhered to since the offer for sale mechanism is one of the modes specified by Sebi Regulations for complying with the minimum public shareholding requirement," the regulator noted.

Accordingly, Sebi has revoked the directions issued through an interim order passed on July 19, 2017 against Swaraj Automotives, its directors, promoters and group, with immediate effect.

Till September 2015, and held 74.18 per cent stake in Swaraj Automotives, while that of public holding was at 25.82 per cent in compliance with Sebi's minimum public shareholding norms.

Later, acquired the entire equity stake held by the promoters of In addition, it acquired additional stake in the firm under the open offer and as a result, it became the new promoter from February 2016.

Following the transaction, the public shareholding in fell below the minimum permissible level of 25 per cent on February 2, 2016.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 14 2018. 19:15 IST