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Securities and Exchange Board of India (Sebi) has partially lifted curbs it had imposed on Miven Machine Tools and its promoters for non-compliance with the minimum public shareholding norms, as the firm is planning to delist from the stock exchanges.
In an order on June 4, 2013, Sebi had barred promoters and directors of 105 firms including Miven Machine from dealing in securities of their firms after they had failed to meet the 25 per cent minimum public shareholding requirement.
In its ruling today, Sebi noted that Miven Machine should be given more time to initiate delisting process. However, it has directed the firm to complete the delisting process within four months.
“...it would be reasonable to afford further time to the company/its promoters to approach its shareholders for a fresh approval for the delisting proposal and initiate the process,” the market regulator said.
Accordingly, Sebi has modified its directions “to the extent that it shall not hinder the voluntary delisting process initiated/to be initiated by the company/promoters and that its promoters shall be permitted to buy shares of the company held by public shareholders in their offer for delisting”.
“The company/its promoter are at liberty to approach its shareholders for seeking their consent with respect to the delisting proposal,” Sebi said.
It further said, “The company shall endeavour to complete the delisting process within a period of four months and shall report the outcome of the delisting process to Sebi within a period of two weeks thereafter.”
The market regulator added that the restrictions would be re-imposed immediately if the company fails to delist within the stipulated time.
It, however, said that directions regarding freezing of voting rights and corporate benefits of the promoters and directors as well as restraint on them from holding any new positions in any listed firm “shall continue to be in effect till such time” the company is delisted or has complied with the minimum public shareholding requirements.
The company had submitted that it was not able to complete the process of delisting within the due date (October 29, 2014) as it did not receive in-principle approval from the BSE.
The exchange had not granted the approval as the firm had not complied with certain clauses of the listing agreement.
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