Private Listed companies whose promoters have kept with them the stakeholdng of more than 75 per cent may face tight situation as the regulatory body of India, Sebi is mulling options including monetary penalties and eventual delisting of non-compliant entities.
Private sector listed companies have 7 more months to bring down their respective promoter share to 75 per cent or below. Sebi has begun the process of identifying those entities that have initiated any process for adhering to this requirement.
The regulator will also inform these companies about the potential penalties and other regulatory actions they might face in case of non-compliance.
At the same time, investors in these companies would also be informed about the potential risks they face due to penal actions to be taken against such entities.
A senior official sad, “In the first phase, the Securities and Exchange Board of India (Sebi) has initiated a consultative process with such companies, wherein the regulator is asking them to provide a plan of action to achieve compliance and to resolve all outstanding issue.”
Futher he added that in the second phase, Sebi plans to ask stock exchanges to monitor compliance to these ‘plans of action’ on steps being taken to increase the public shareholding to a minimum of 25 per cent and issue notices to the non-adhering firms.
Major companies like DLF, Jet Airways, Wipro, Tata Communications, Tata Tele, Sun TV, L&T Finance, Omaxe, Fortis Healthcare and Reliance Power. Such firms also include Bajaj Corp, Essar Shipping, Essar Ports, Jaypee Infratech, Mahindra Holidays, Muthoot Finance, Adani Enterprises, Adani Ports, Oberoi Realty and JSW Energy are players where promoter holding was more than 75 per cent at the end of last quarter (September 30)
Together, these companies would need to sell shares worth an estimated amount of more than Rs 30,000 crore to meet the required shareholding norms.
Source – Agences