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Sebi revokes curbs on Polson in minimum public holding case

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Press Trust of India New Delhi
Markets regulator Sebi has lifted the restrictions imposed on Polson Ltd and its directors as well as promoters for not meeting the minimum public shareholding regulations, after the company complied with the norms.

The Securities and Exchange Board of India (Sebi), on June 2013, had imposed various curbs on 105 firms, including Polson, its promoters and directors, for not meeting 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.

In an order, Sebi said the company has resorted to the offer for sale mechanism to reduce promoter shareholding. The public shareholding as of October 27, 2017 stands at 25.01 per cent of the total number of shares of the company.

This is in compliance with the public shareholding requirement of 25 per cent mandated under Securities Contracts (Regulation) as a continuous listing requirement for listed companies, it added.

Besides, Sebi said that the mode of compliance has been adhered to since offer for sale mechanism is one of the modes specified under the regulations for complying with the minimum public shareholding requirement.

Accordingly, Sebi has revoked the directions issued in the interim order in June 2013 against Polson, its directors, promoters and promoter group, with immediate effect.

However, the regulator noted that the company has delayed compliance with MPS requirement by more than 4 years (from June 3, 2013 till October 26, 2017).

"Since I do not find any justifiable reason for the company --Polson -- to have delayed the compliance of the requirement to maintain the said minimum public shareholding, Sebi may consider initiating any action as deemed fit," Sebi Whole Time Member G Mahalingam said.

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First Published: Jan 31 2018 | 7:30 PM IST

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