Mumbai: Market regulator Sebi revoked restrictions imposed on Mudra Lifestyle, its directors and promoters for failing to meet the 25 per cent minimum public shareholding norms within a specified deadline.
The Securities and Exchange Board of India (Sebi) said that restrictions against Mudra Lifestyle have been revoked as the company is now compliant with the required public shareholding norms. As per Sebi norms, all listed private sector companies were required to attain a minimum of 25 per cent public shareholding by June 3. On June 4, the regulator had imposed curbs on several non-compliant firms, including Mudra Lifestyle.
Sebi had frozen the voting rights and corporate benefits of promoters/directors of these companies, among other things. It had also warned of further actions including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks. As on June 30, 2011, the total promoter group's shareholding was 65.87 per cent in Mudra Lifestyle. Subsequently in July 2011, the promoter had acquired 20 per cent stake, which had increased the promoter group's shareholding to 85.87 per cent.
Therefore, the company became non-compliant with the minimum public shareholding requirements in July 2011. This default has continued till it achieved compliance during September 2014. Accordingly, Sebi has revoked "the directions issued vide the interim order dated June 04, 2013 against the company, Mudra Lifestyle Limited, its directors, promoters and promoter group, with immediate effect."
