Biz-NewZ!

SEBI FREEZES CORPORATE SOPS OF
GILLETTE BRASS

The Securities and Exchange Board of India (Sebi) on Friday
took action against the promoters and directors of Gillette India for the company’s non-compliance with the
minimum public shareholding (MPS) norms specified by the regulator.
The promoters and directors have been prohibited from
dealing in securities of Gillette,either directly or indirectly except for the purpose of complying with MPS norms, till the company takes its public shareholding
from current 11.24% to minimum 25%.
The market regulator’s order
against Gillette comes just days after the latter’s appeal was
dismissed by the Securities Appellate Tribunal (SAT). The
company had filed an appeal with SAT in November challenging Sebi’s refusal to the
company’s submitted proposal for complying with minimum 25% public shareholding norms.
The SAT in its hearing on July 3 had also vacated the interim
relief it had granted to Gillette on May 30, 2013 — three days
before the June 3 deadline— to meet MPS norms.
The market regulator’s order
would result in freezing of voting
rights and corporate benefits like dividend, rights, bonus shares,
split, etc of the promoter group with respect to excess promoter holding of 55%, as per Sebi’s
prescribed formula, till such time the company complies with the MPS.
The regulator has also restrained the promoter/promoter group and directors of the non-compliant company from holding any new position as a director in any listed company, till such time Gillette complies with the MPS requirement.
Sebi had earlier passed similar order against 105 companies on June 4, 2013, for failing to
comply with the MPS
requirement. The interim order issued then did not cover three companies including Gillette,
since the matter was sub judice.