Markets regulator Sebi today refused to lift restrictions imposed on Kumaka Industries Ltd for non-compliance of minimum public shareholding norms.
The Securities and Exchange Board of India (Sebi) in June 2013 had imposed various curbs on over 100 firms, including Kumaka Industries, their promoters and directors for not achieving 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.
It had also warned the companies of further actions, including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks.
"... Hereby confirm the directions issued vide the interim order dated June 4, 2013 against the company, Kumaka Industries Ltd, its directors, promoters and promoter group, till further orders," Sebi said.
According to the order, though the company has proposed a scheme of arrangement for complying with the norm but Sebi said, "...It is clear that the company did not comply with the MPS requirements on or before June 3, 2013, the prescribed due date and the non-compliance continues as on this date."
The company also argued that its scrips were suspended on BSE, on which the regulator said, "...The status of the company as suspended from the stock exchange cannot be an excuse for non-compliance of the MPS requirement."
"Kumaka Industries Ltd, on compliance of the MPS requirement may bring to Sebi's notice its compliance and appropriate orders may be passed at that time," the order said.
(REOPENS DCM88)
In a separate order, Sebi also refused to lift restrictions on Sanghvi Asbestos Cements Ltd for failing to comply with the minimum public shareholding norms.
The regulator said that in spite of several chances given to the company for hearing, there were no replies filed by it.
"Accordingly...Hereby confirm the directions issued vide the interim order dated June 4, 2013 against the Company, Sanghvi Asbestos Cements Limited, its directors, promoters and promoter group," Sebi said in its order.
