Capital market regulator SEBI has confirmed the restrictions it had imposed on Khoday India for not meeting with the minimum public shareholding norms.

The Securities and Exchange Board of India (SEBI) in June last year, had imposed various curbs on over 100 firms, including Khoday India, its promoters and directors for not achieving the minimum 25 per cent public holding within the June 3 deadline.

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 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, Khoday India Ltd, its directors, promoters and promoter group,” the market regulator said in a order dated July 24.

Consequently, SEBI said that it “may also initiate other action, as appropriate in law, against the company, its directors and promoters”.

The watchdog noted that even after passing of the June 4, 2013 order, “the company has not taken any steps to comply with the minimum public shareholding requirement”.

The order said that the shareholding of public investors in the company stood at 10.46 per cent at the quarter ended March 31, 2014.

It observed that the company “has not complied with the minimum public shareholding requirements till date... and such non-compliance being continuous in nature, it becomes necessary for SEBI, for proper regulation of the securities market, to confirm the directions issued against the Company, its directors and promoters/promoter group”.

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