NEW DELHI, Nov 12: Markets regulator Sebi has lifted the restrictions it had imposed on Tea Time, its directors and promoters, for failing to meet the minimum 25 per cent public shareholding norms.
The curbs have been revoked by Securities and Exchange Board of India (Sebi) after the company complied with the minimum public shareholding (MPS) requirements.
Earlier in an order dated June 4, 2013, the regulator had imposed various curbs on 105 non-compliant firms, including Tea Time, their promoters and directors, for not meeting the public holding requirement.
Sebi had also frozen the voting rights and corporate benefits of promoters or directors of these companies and barred them from holding any new position on boards of listed firms, among others.
Moreover, the watchdog had warned the firms of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.
According to Sebi, Tea Time complied with the norms on September 9, when it completed the allotment of bonus shares to its public shareholders.
The public shareholders now hold 25.05 per cent equity shares of the company, which is in compliance with the MPS norms.
In an order passed on November 10, the capital markets regulator said it would be appropriate and reasonable to vacate the directions issued against the company, its promoters and directors.
However, in respect of the non-compliance of the MPS requirements by the company within the stipulated time, Sebi has referred the case for adjudication proceedings.
Sebi said it has revoked “the directions issued vide the interim order dated June 4, 2013 against Tea Time, its directors, promoters and promoter group, with immediate effect.” (PTI)
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