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Sebi may initiate action against SIEL Financial

Capital market regulator Sebi on Tuesday said it may initiate action against SIEL Financial Services as well as its promoters and directors for not meeting minimum public shareholding requirements.

Confirming its June 2013 interim order Sebi said that SIEL Financial had ‘till date’ not complied with 25 per cent minimum public holding norms and that such non-compliance was ‘continuous in nature’.
Further, Sebi noted that it ‘may also initiate other action, as appropriate in law, against the company, its directors and promoters’.

The order on Tuesday said Sebi ‘hereby confirm the directions issued vide the interim order dated 4 June, 2013 against the company, SIEL Financial Services Ltd, its directors, promoters and promoter group’.

In the earlier order, Sebi had slapped various curbs on over 100 non-compliant companies including SIEL Financial, their promoters and directors for not meeting the norms.

It had also 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. Among others, the firm had cited its poor financial position and that of its promoter for failure to comply with the norms.

‘As long as the company remains listed, it should comply with the applicable law including the continuous listing requirement...,’ Sebi said.

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