Public float defaulters to face fresh penal action, says SEBI
1 July 2013 10:12 PM GMT
Capital markets watchdog Sebi has initiated the process of fresh penal actions against companies having defaulted on minimum public holding norms, with a stricter crackdown against ‘wilful defaulters’.
At the same time, Sebi has also stepped up its efforts to engage with listed public sector companies, which need to achieve minimum 10 per cent public float by sale of shares worth an estimated Rs 3,000 crore before a separate deadline of 8 August. The deadline for private sector listed companies to achieve minimum 25 per cent public shareholding expired on 3 June, following which Sebi had taken interim actions against 105 companies that failed to comply with the norms. As per Sebi’s interim order dated 4 June, these companies were given 21-day time to present their case before the regulator with regard to their non-compliance.
‘As the time to respond to the Sebi show-cause notice has expired, the regulator is now considering further actions against defaulters for the minimum public holding norms,’ a senior official said. ‘While some firms made genuine efforts to meet this regulatory requirement, Sebi has also come across certain ‘wilful defaulters’ who did not make any visible attempts,’ he added.
At the same time, Sebi has also stepped up its efforts to engage with listed public sector companies, which need to achieve minimum 10 per cent public float by sale of shares worth an estimated Rs 3,000 crore before a separate deadline of 8 August. The deadline for private sector listed companies to achieve minimum 25 per cent public shareholding expired on 3 June, following which Sebi had taken interim actions against 105 companies that failed to comply with the norms. As per Sebi’s interim order dated 4 June, these companies were given 21-day time to present their case before the regulator with regard to their non-compliance.
‘As the time to respond to the Sebi show-cause notice has expired, the regulator is now considering further actions against defaulters for the minimum public holding norms,’ a senior official said. ‘While some firms made genuine efforts to meet this regulatory requirement, Sebi has also come across certain ‘wilful defaulters’ who did not make any visible attempts,’ he added.
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