Market regulator SEBI on Friday revoked restrictions on Bhagyashree Leasing and Finance, its directors and promoters after the company complied with the minimum 25 per cent public shareholding norms.

In an order today, the Securities and Exchange Board of India (SEBI) said it did not propose to initiate any further action against Bhagyashree Leasing, its promoters and directors, as the firm “has complied with the MPS (minimum public shareholding norms, though belatedly...”.

”...hereby revoke the directions vide the interim order dated June 4, 2013 against the company, Bhagyashree Leasing and Finance Ltd, its directors, promoters and promoter group, with immediate effect,” SEBI said.

In an June 4 order, SEBI had imposed various restrictions on over 100 companies including Bhagyashree Leasing and their promoters and directors for not meeting the minimum 25 per cent public holding within the June 3 deadline.

SEBI had frozen the voting rights and corporate benefits of promoters/directors of these companies, 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.

Bhagyashree Leasing submitted to SEBI that for the purpose of complying with the norms it had opted for offer for sale of shares on June 24, 2013 and the promoter’s holding was brought down to 75 per cent, as required.

SEBI observed that Bhagyashree Leasing had delayed in meeting with the minimum public holding norms when it was under notice for three years for achieving such compliance.

“...the company is warned for its conduct and is advised to ensure compliance with all the applicable laws and regulations administered by SEBI, in letter and spirit,” the regulator said.

Related Topics