Securities and Exchange Board of India (SEBI) has revoked restrictions imposed on BGR Energy Systems and Sah Petroleums as well as their directors and promoters as they have complied with minimum public shareholding norms.
SEBI had imposed various restrictions on 105 firms and their promoters and directors on June 4, 2013 after the expiry of deadline for achieving minimum public shareholding of 25 per cent.
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, restricting the trading activities of related stocks and other possible directions.
BGR Energy had opted to divest 44.22 lakh equity shares constituting 6.13 per cent of the share capital of the company through an Offer for Sale (OFS) on June 3, 2013. However, it was able to sell only 22.47 lakh equity shares and the promoter group could divest only 3.12 per cent stake.
Consequently, the promoter holding reduced from 81.13 per cent to 78.01 per cent. In order to meet the public holding norms, the company went for another OFS for 21.75 lakh shares on July 5, 2013.
Pursuant to the same, the promoters holding was further reduced to 75 per cent, thereby raising the public holding to stipulated 25 per cent.
In Sah Petroleums’ case, it had undertaken a bonus issue of equity shares to the public shareholders and had allotted 69.84 lakh equity shares to them on July 12 for the purposes of complying with SEBI norms. Consequently, the promoter holding reduced from 87 per cent to 74.98 per cent.