Sebi permits Titan Trading promoters to deal in shares
Oct 11 2013 , Mumbai
Securities and Exchange Board of India (Sebi) has lifted the curbs that barred Titan Trading's promoter-director Atul Choksey and promoter Parul Choksey from dealing in shares of the company, which is in the process of getting delisted voluntarily.
In its order dated October 9, Sebi has asked the firm to complete the "delisting process within a period of three months", failing which the restrictions would be "re-imposed".
"The direction issued in...The interim order dated June 4, 2013 stands modified to the extent that it shall not hinder the already commenced voluntary delisting process initiated by the company, Titan Trading & Agencies Ltd," Sebi said in an order dated October 9.
"...Parul Choksey and Atul Choksey (the two promoters of the company) shall be permitted to buy the equity shares from the public shareholders as part of the delisting offer," the regulator added.
However, Sebi said the directions pertaining to freezing of voting rights and corporate benefits of promoters/directors of the company and barring them from holding any new position in any listed firm, would continue till the time Titan Trading is delisted from the stock exchange or becomes compliant with the minimum public shareholding norms.
Sebi noted that a important provision of delisting process required consent of at least 90 per cent of public shareholders and also their assent to sell the shares at the price offered by the promoter or to remain as holders even if they are delisted.
"...The company has written to all the shareholders and as per the scrutinizer's report the shareholders have unanimously resolved to delist," Sebi noted.
In an order dated June 4, the regulator had imposed various restrictions on 105 non-compliant companies including Titan Trading, their promoters and directors for not meeting the 25 per cent public shareholding requirement by June 3.
As per submissions made by Titan Trading, the firm had examined the options available in order to meet with the requirement of minimum public holding norms and subsequently decided that delisting was feasible and practical.
Accordingly, the company filed an application in May, 2013 with BSE for an in-principle approval for the delisting of its shares. However, the process could not be completed due to Sebi's June 4 interim order, the company said.