Capital market regulator Sebi today revoked curbs that it had imposed on Hubtown Ltd, its promoters and directors for not achieving the 25 per cent minimum public shareholding within the due date.
The restrictions have been revoked as the company is now compliant with the minimum public shareholding norms.
However, the market regulator has referred the matter for adjudication proceedings for imposition of suitable penalty against the company and its promoters as they made a delay in meeting with the requirements.
On June 4, 2013, the market regulator had imposed various restrictions on over 100 listed firms including Hubtown for failing to meet the minimum public shareholding norms by June 3, last year.
The curbs included barring the firms promoters/directors from holding any new position on boards of listed entities as well as freezing their voting rights and corporate benefits.
In an order today, Sebi said that "the company (Hubtown) has now achieved the compliance with MPS (minimum public shareholding) norms through an Offer For Sale on June 4, 2014, the public shareholders now hold 25.02 per cent in the company and is compliant with the MPS requirements as stipulated under...The listing agreement".
"Therefore, it would be appropriate and reasonable to vacate the directions issued against the company, its promoters and directors," the Securities and Exchange Board of India (Sebi) said.
"... Hereby revoke the directions vide the interim order dated June 4, 2013, against the company, Hubtown Ltd, its directors, promoters and promoter group, with immediate effect," the regulator added.
Sebi added that it did not find the reasons offered by Hubtown for delay in compliance of MPS requirements "as plausible" and has accordingly referred the case for adjudication.
The company had submitted with Sebi that it had made efforts to comply with the requirements within the stipulated period, however, the same could not be completed due to tepid response from the prospective investors.
It had said that due to a pending proceedings by Sebi against it, the prospective investors were put off from investing in its scrip.
