SEBI revokes curbs against Dalal Street Investments
Mumbai: Market regulator SEBI Thursday revoked restrictions imposed on Dalal Street Investments, its directors and promoters, saying that the company has complied with the minimum public shareholding norms.
The Securities and Exchange Board of India (SEBI) had imposed various restrictions on 105 firms including Dalal Street Investments and their promoters and directors on June 4, 2013 after the expiry of deadline for achieving minimum public shareholding of 25 percent.
The regulator had frozen the voting rights and corporate benefits of promoters and directors of these companies and barred them from holding any new position on boards of listed firms.
It had also warned of further actions including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks.
SEBI said in its order that "...Hereby revoke(s) the directions issued vide the interim order dated June 4, 2013 against the company, Dalal Street Investments Ltd, its directors, promoters and promoter group, with immediate effect."
According to SEBI, Dalal Street Investments had adopted the route of issue of equity shares on rights basis to non- promoters and that on July 20 this year, the company had allotted 90,074 equity shares to the non-promoter shareholders of the company.
Pursuant to that, the promoters' shareholding was reduced to 57.12 percent.
"As per the shareholding pattern of the company as on July 26, 2013, available on the website of the BSE, I note that the public shareholding in the company is at 42.88 percent," SEBI's Whole Time Director Prashant Saran said.