The Securities and Exchange Board of India (SEBI) has begun penalizing public listed companies that failed to meet the 3 June deadline for putting a minimum of 25% of their equity shares in public hands. Statistics from 4 June show that 105 companies have failed to comply with the regulator’s new public shareholding norms.
The securities regulator has responded by imposing a range of sanctions on non-compliant companies. It has prohibited the promoters, promoter groups and directors of such companies from buying, selling or otherwise dealing in the securities of their companies. It has also ordered the freezing of promoters’ and promoter groups’ voting rights and corporate benefits. Furthermore, the promoters and directors of non-compliant companies have been restrained from holding new positions as a director of any listed company until they comply with the public shareholding norms.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.