WTM/PS/09/CFD/MAY/2015

SECURITIES AND EXCHANGE BOARD OF INDIA

ORDER
UNDER SECTIONS 11(1), 11(2)(j), 11(4) AND 11B OF THE SECURITIES AND
EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH SECTION 12A OF THE
SECURITIES CONTRACTS (REGULATION) ACT, 1956
IN THE MATTER OF NON-COMPLIANCE WITH THE MINIMUM PUBLIC
SHAREHOLDING NORMS
IN RESPECT OF TAPARIA TOOLS LIMITED

1.

Securities and Exchange Board of India (hereinafter referred to as the SEBI) received a

complaint on June 04, 2014 in the SEBI Complaints Redress System (SCORES) alleging inter alia
that a company, namely, Taparia Tools Limited has a. breached the listing norms as it failed to comply with rule 19A {of the Securities
Contracts (Regulation) Rules, 1957} ;
b. failed to send details of promoters and public shareholders since 2003;
c. moved some promoters to the public category and cheated the shareholders and the
regulator.
2.

Taparia Tools Limited (hereinafter referred to as the Company) is a company

incorporated on December 31, 1965 under the provisions of the Companies Act, 1956. The
Corporate Identification Number (CIN) of the Company is L99999MH1965PLC013392. The
registered office of the Company is situated at 52 & 52B, MIDC Area, Satpur, Nashik, Maharashtra,
Pin Code-422007. The equity shares of the Company are listed on the Bombay Stock Exchange
Limited (hereinafter referred to as BSE).
3.

SEBI, vide letter dated June 17, 2014, while forwarding the above said complaint to the

Company, sought details of its shareholding pattern from the year 2003. The Company replied
stating that it required more time as it was collating records. However, even after a reminder to
submit records, a similar submission was made.

As information was not forthcoming from the

Company, SEBI advised BSE (where the shares of the Company are listed), by an email dated August 21,
2014, to examine the matter based on the records available with it.
4.

BSE, in its email dated August 25, 2014 stated that on perusal of the shareholding pattern of

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the Company, a few shareholders who held shares under the promoter category as on September
30, 2010, did not hold any shares under the same category as on December 30, 2010. The details of
such shareholders of the Company are as below:
S. No.

Name of the promoter

As on 30.09.2010

57,358
5000
2,64,288
46,000

As
on
31.12.2010
%
of No. of shares
shareholding
1.89%
nil
0.16%
nil
8.71%
nil
1.52%
nil

3,72,646 shares

12.28%

No. of shares
1.
2.
3.
4.

Mr. Shree Kumar Bangur

Mrs. Bela Taparia
Veer Enterprises Limited
Shree Satyanarayan
Investment Company
Limited
Total

nil

BSE has also informed SEBI that the Company, in its letter dated April 2011, had submitted the
details (to BSE) of shareholding of promoters and persons having control over the Company and persons acting
in concert with them, as of March 31, 2011. This disclosure was made under regulation 8(3) of the
SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. In this disclosure, the
names of the above 4 persons/entities did not figure. The following remark Previous Years figures
has been re-grouped due to correct classification of definition of Promoter & Promoter Group as per SEBI (Issue of
Capital and Disclosure Requirements) Regulations, 2009 was made towards the end of the statement.
5.

It was also noticed from the shareholding pattern of the Company for the quarter ended

September 2010, that the Promoter and Promoter group held 80.49% of the equity share capital in
the Company. However, the same was shown as reduced to 68.21% in the shareholding pattern for
the next quarter i.e., December 2010. This has been done by deleting the names of the above said
four promoters and their combined shareholding of 12.28% {80.49% - 12.28% = 68.21%} from
the promoter group and grouping them under the 'public' category.
6.

Considering the deletion of the names of four promoters and their respective shareholding

in the Promoter category, the disclosure made by the Company under regulation 8(3) of the
Takeover Regulations and the remark as mentioned therein, it is inferred that the Company has reclassified the four promoters as public shareholders in its shareholding pattern made from
December 2010 onwards.

It is important to note that pursuant to the re-classification, the

Company has represented that it has achieved the minimum public shareholding requirement of
25%.

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7.

In this context, it is important to refer to the provisions governing the minimum public

shareholding in companies and the methods prescribed by SEBI for listed companies to achieve
compliance with such norms.
a) The Securities Contracts (Regulation) Act, 1956 (SCRA) was enacted to prevent undesirable
transactions in securities by regulating the business of dealings therein, and by providing for
certain other matters connected therewith. Further for carrying out the mandate of the
SCRA, the Securities Contracts (Regulation) Rules, 1957 (hereinafter referred to as 'SCRR')
were framed by the Central Government. Section 21 of the SCRA mandates the compliance,
by all listed companies, of the conditions of the listing agreement with the stock exchange.
The SCRR inter-alia, prescribes the requirements which have to be satisfied by companies for
the purpose of getting their securities listed on any stock exchange in India.
b) The SCRR was amended vide notification of the Securities Contracts (Regulation)
(Amendment) Rules, 2010 ('First amendment') by the Central Government dated June 04,
2010 and amended once again vide Securities Contracts (Regulation) (Second Amendment)
Rules, 2010 ('Second amendment') in terms whereof Rule 19(2)(b) was amended and a new
rule; Rule 19(A) was introduced to the SCRR respectively. The amended provisions of rule
19(2)(b) and the newly inserted rule 19(A) of the SCRR are reproduced below for reference:

Requirements with respect to the listing of securities on a recognised stock

exchange.

19 (2)
(b) (i) At least twenty five per cent of each class or kind of equity shares or debentures convertible into equity
shares issued by the company was offered and allotted to public in terms of an offer document; or
(ii) At least ten per cent of each class or kind of equity shares or debentures convertible into equity shares
issued by the company was offered and allotted to public in terms of an offer document if the post issue capital
of the company calculated at offer price is more than four thousand crore rupees:
Provided that the requirement of post issue capital being more than four thousand crore rupees shall not apply
to a company whose draft offer document is pending with the Securities and Exchange Board of India on or
before the commencement of the Securities Contracts (Regulation) (Amendment) Rules, 2010, if it satisfies
the conditions prescribed in clause (b) of sub-rule 2 of rule 19 of the Securities Contracts (Regulation) Rules,
1956 as existed prior to the date of such commencement:
Provided further that the company, referred to in sub clause (ii), shall increase its public shareholding to at
least twenty five per cent, within a period of three years from the date of listing of the securities, in the manner
specified by the Securities and Exchange Board of India.

Continuous Listing Requirement.

19A. (1) Every listed company [other than public sector company] shall maintain public shareholding of at
least twenty five per cent.:
Provided that any listed company which has public shareholding below twenty five percent, on the

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commencement of the Securities Contracts (Regulation) (Amendment) Rules, 2010, shall increase its public
shareholding to at least twenty five per cent, within a period of three years from the date of such
commencement, in the manner specified by the Securities and Exchange Board of India.
Explanation: For the purposes of this sub-rule, a company whose securities has been listed pursuant to an
offer and allotment made to public in terms of sub-clause (ii) of clause (b) of sub-rule (2) of rule 19, shall
maintain minimum twenty five per cent public shareholding from the date on which the public shareholding in
the company reaches the level of twenty five percent in terms of said sub-clause.
(2) Where the public shareholding in a listed company falls below twenty five per cent at any time, such
company shall bring the public shareholding to twenty five per cent within a maximum period of twelve
months from the date of such fall in the manner specified by the Securities and Exchange Board of India.
(3) Notwithstanding anything contained in this rule, every listed public sector company shall maintain public
shareholding of at least ten per cent.:
Provided that a listed public sector company(a) which has public shareholding below ten per cent, on the date of commencement of the Securities Contracts
(Regulation) (Second Amendment) Rules, 2010 shall increase its public shareholding to at least ten per cent,
in the manner specified by the Securities and Exchange Board of India, within a period of three years from
the date of such commencement;
(b) whose public shareholding reduces below ten per cent, after the date of commencement of the Securities
Contracts (Regulation) (Second Amendment) Rules, 2010 shall increase its public shareholding to at least
ten per cent, in the manner specified by the Securities and Exchange Board of India, within a period of
twelve months from the date of such reduction.
c) In terms of the amended provisions of rules 19(2)(b) and 19A of the Securities Contracts
(Regulation) Rules, 1957 ("the SCRR"), all listed companies in the private sector were
mandated to achieve and maintain the minimum public shareholding of 25% of each class
or kind of equity shares or debentures convertible into equity shares issued by such
companies. Those companies with public shareholding of less than 25% are required to
achieve the same, within a period of three years from the date of commencement of the first
amendment i.e. by June 03, 2013 in the manner specified by the Securities and Exchange
Board of India (SEBI).
d) In order to align the requirements in the Listing Agreement with the requirements specified
in Rule 19(2)(b) and Rule 19A of SCRR and to specify the manner in which public
shareholding may be raised to the prescribed minimum level, SEBI issued a Circular No
CIR/CFD/DIL/10/2010 dated December 16, 2010 to suitably amend Clause 40A of the
Listing Agreement. This Circular provided the following methods for complying with the
minimum public shareholding requirement:

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a. Issuance of shares to the public through prospectus;

b. Offer for sale of shares held by promoters to public through prospectus;
c. Sale of shares held by promoters through the secondary market i.e. OFS through
Stock Exchange;
e) Subsequently, SEBI issued another Circular dated February 08, 2012 which inter-alia
provided that listed companies may achieve the minimum public shareholding requirement
through Institutional Placement Programme (IPP). With a view to further facilitate listed
companies to comply with the minimum public shareholding requirements within the time
specified in the SCRR, SEBI issued the Circular dated August 29, 2012 which specified the
following additional methods to comply with the minimum public shareholding
requirements:
d. Rights Issues to public shareholders, with promoters/promoter group shareholders
forgoing their rights entitlement.
e. Bonus Issues to public shareholders, with promoters/promoter group shareholders
forgoing their bonus entitlement.
f. Any other method as may be approved by SEBI, on a case to case basis.
f) SEBI also initiated a consultative process with these companies and market participants to
elicit a concrete plan of action as regards ensuring compliance with the minimum public
shareholding requirement and held a series of meetings with active companies to enable the
process of complying with the minimum public shareholding requirement.

All these

measures and methods were taken/initiated to ensure that listed companies comply with the
minimum public shareholding norms before the due date and comply strictly in accordance
with the prescribed methods.
8.

However, as can be noticed from the facts and circumstances of the instant case, the

reclassification as done by the Company is not one of the approved methods for complying with
the minimum public shareholding norms.

The Company did not also approach SEBI with their

proposal to reclassify the promoters as 'public' shareholders. Accordingly, the above conduct of the
Company is not in accordance with the prescribed methods.
9.

I also note the following facts from records:

a.

As per the Annual Return (AGM held on 30.09.2014) of Shree Satyanarayan

Investments Company Limited (an entity forming part of the Company's promoter group as per

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the filing made till the quarter ended September 2010), its shareholders include Mr. Shree Kumar
Bangur, his wife Ms. Shashi Devi Bangur and Veer Enterprises Limited.
b.

As per the Annual Return (AGM held on 30.09.2014) of Veer Enterprises Limited (an
entity forming part of the Company's promoter group as per the filing made till the quarter ended
September 2010), its shareholders include Mr. Shree Kumar Bangur, his wife Ms. Shashi
Devi Bangur, his sons Mr. Saurabh Bangur and Mr. Virendraa Bangur, Ms. Kamala Devi
Bangur (mother of Shree Kumar Bangur) and Shree Satyanarayan Investments Company
Limited.

c.

As mentioned above, it can be seen that Veer Enterprises and Shree Satyanarayan
Investments Company Limited hold shares in each other.

d.

As per the list of signatories of the Company, Mr. Virendraa Bangur, son of Mr. Shree
Kumar Bangur is one of the directors.

e.

The directors of Shree Satyanarayan Investments Company Limited include Mr. Shree
Kumar Bangur.

10.

As per the shareholding pattern of the Company as on December 31, 2014 a) Mr. Shree Kumar Bangur, his sons Mr. Saurabh Bangur and Mr. Virendraa Bangur,
Shree Satyanarayan Investments Company Limited and Veer Enterprises Limited are
shown under the public category holding more than 1%. However, it is noted that Ms.
Shashi Devi Bangur is shown under the promoter category of the Company. Further, as
mentioned above, Mr. Virendraa Bangur (son of Shree Kumar Bangur) is one of the
directors in the Company.
b) Few promoters, namely, Mr. Harnarayan Hanumanbux Taparia, Mr. Deviprasad Taparia,
Mr. Jayakrishna Hanumanbux Taparia and Mr. Madhavprasad Taparia, are also the
signatories in the Company. Further, the surname 'Taparia', is common to a few promoters.
Mrs. Bela Taparia was also shown as forming part of the Company's promoter group as per
the filing of shareholding pattern till September 2010. Further, Anant Taparia, Aryaman
Taparia (Minor) and Shreekanta Devi Taparia are also found to be shown in the public
category (i.e., public shareholders holding more than 1% of the total number of shares). In
view of the same, it appears that Mrs. Bela Taparia (a promoter who has been reclassified as a
public shareholder), Anant Taparia, Aryaman Taparia (Minor) and Shreekanta Devi
Taparia are related to the promoter group of the Company.

11.

It is also noted from shareholding pattern of the Company for the quarter ended June 2010

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that Ms. Sonam Taparia and Mrs. Devki Devi Jhawar were holding 1.20% and 0.05% respectively
as promoters in the Company. As per the information obtained from the RTA of the Company, it
is noted that (a) Sonam Taparia transferred her entire shareholding to Mrs. Shrikanta Devi Taparia on
March 30, 2013;
(b) Devki Devi Jhawar had transferred her entire shareholding to Satish Kumar Mundhra on
January 31, 2014.
As Sonam Taparia had transferred her entire shareholding in the Company before the due date for
compliance with the MPS norms, she may be afforded benefit. However, the transferee Mrs.
Shrikanta Devi Taparia had the liability along with other promoters to comply with the MPS norms.
As mentioned above,
Devki Devi Jhawar had transferred her holding post June 03, 2013 (the due date for MPS
compliance) to Satish Kumar Mundhra. Therefore, till such time she was holding shares, she was
subject to the mandate of complying with the MPS norms. In view of the alleged failure to comply
with the MPS norms, suitable regulatory action needs to be initiated against Devki Devi Jhawar.
12.

It is noted that one Harsha Mundhra (holding 1.65%) is shown under the category

'promoter and promoter group'.

However, one Abhimanyu Mundhra-minor is shown as a

shareholder under the public category (holding more than 1%). As mentioned above, Mr. Satish
Kumar Mundhra holds shares of the Company, having received the same from Mrs. Devki Devi
Jhawar. Therefore, it appears that Abhimanyu Mundhra-minor and Mr. Satish Kumar
Mundhra are related to the promoter group of the Company and responsible for the compliance
along with the other promoters.
13.

In view of the above facts and observations, it can be noticed that the persons/entities who

have been reclassified as public shareholders continue to be associated with the 'promoter group' of
the Company. The same is against the objective of having a dispersed ownership of a listed public
company. If some promoters simply reclassify and show their shareholding under the public
category and yet continue to exercise control through the others in the promoter group, the same
would be against the letter and spirit of the requirement which mandates dispersed shareholding in a
listed company.
14.

Further, when the shareholding of -

Saurabh Bangur (1.86%),

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Shree Kumar Bangur (1.89%),

Shree Satyanarayan Investments Company Limited(1.52%)
Veer Enterprises Limited (8.71%),
Virendraa Bangur (1.86%),
Abhimanyu Mundhra-minor (1.65%),
Anant Taparia (1.99%),
Aryaman Taparia-minor (1.66%),
Shreekanta Devi Taparia (2.67%) and
Ms. Bela Taparia (0.16%)
Satish K. Mundhra (0.05%)
are deducted from the claimed public shareholding of 30.28% in the Company, then the public
shareholding stands at only 6%. The same is much below the minimum requirement of 25%.
15.

The facts and circumstances of this case also give rise to a doubt that there could be more

shareholders (including corporate shareholders) who may be part of the 'promoter and promoter
group' of the Company, but have been classified/shown under the 'public' category. In this manner,
the Company had allegedly misrepresented that it had complied with the MPS norms.
16.

From the foregoing discussions, it appears that the Company/its promoters/directors and

personnel in-charge have made an attempt to evade compliance with the MPS norms and have
misrepresented that the Company has achieved compliance, by merely reclassifying a few promoters
as public shareholders. Therefore, the disclosures regarding the shareholding of the promoters and
persons in control and their PACs, made under the Takeover Regulations, are also wrong and
misrepresented.
17.

The rationale behind the insertion of rule 19A in the SCRR, can be noted from the Press

Release dated June 4, 2010, issued by the Ministry of Finance, Government of India, which inter alia
states that "A dispersed shareholding structure is essential for the sustenance of a continuous market for listed
securities to provide liquidity to the investors and to discover fair prices. Further, the larger the number of shareholders,
the less is the scope for price manipulation.". Further, the availability of a minimum portion/number of
shares (floating stock) of the listed securities with the public ensures that there is a reasonable depth
in the market and the prices of the securities are not susceptible to manipulation. Moreover a
dispersed shareholding structure is also essential for the sustenance of a continuous market for
listed securities to provide liquidity to the investors and to discover fair prices. I also note the
following observations made by the Hon'ble Securities Appellate Tribunal in the order dated July

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03, 2013 passed in the matter of Gillette Limited vs. SEBI (Appeal no. 65 of 2013) :
"24.

................ In our opinion, the Appellant seems to have overlooked, whether deliberately or inadvertently, the

fact that the underlying philosophy behind the requirement of a minimum public holding of 25% is prevention of
concentration of shares in the hands of a few market players by ensuring a sound and healthy public float to stave off
any manipulation or perpetration of other unethical activities in the securities market which would unfortunately be the
irrefragable consequence of the reins of the market being in the hands of a few.
25. It is pertinently noted that in the proposition put forth by the Appellant, the entire idea behind having a specific
percentage of 25 involving a large number of the members of the public in the shareholding of listed companies, is
eclipsed by the Appellants trying their best to part with as little of the promoters shareholding as possible. ..........."

18.

In view of the above, I am of the considered opinion that persons/entities, Saurabh Bangur

(1.86%), Shree Kumar Bangur (1.89%), Shree Satyanarayan Investments Company Limited(1.52%),
Veer Enterprises Limited (8.71%), Virendraa Bangur (1.86%), Abhimanyu Mumdra-Minor (1.65%),
Anant Taparia (1.99%), Aryaman Taparia-minor (1.66%), Shreekanta Devi Taparia (2.67%), Bela
Taparia (0.16%) and Satish Kumar Mundhra (0.05%) may be considered as part of the 'promoter
group' of the Company, irrespective of their reclassification/classification as 'public' shareholders.
Any reference, hereinafter, to the promoter group shall include the above persons and
entities. As per the shareholding pattern for the quarter ended December 2014, the 'promoter and
promoter' group hold around 69.72%.

The promoter group actually holds 94% when the

shareholding of the 'Bangur' group is added therein.

19.

Accordingly, I am of the considered opinion that these shareholders and the other persons

forming part of the promoter/ promoter group and the directors of such non-compliant companies
are mainly responsible for the non compliance with the minimum public shareholding requirements
within specified timelines. The promoters/promoter group including the above persons/entities of
the Company would have an advantage on account of their disproportionate stake compared to the
public in their Company and also place them in a more advantageous position as compared to the
promoter/ promoter groups of the compliant companies on account of violating the regulatory
requirement prescribed in the SCRR by the Central Government and as specified by SEBI.
20.

As such, in order to ensure an equitable participation of the promoter / promoter group

and the directors qua the public shareholders in the affairs of a private sector listed company and
also provide a level playing field for the promoter/ promoter groups of these companies with the

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promoter/ promoter groups of the other companies that have already complied with the abovementioned provisions of SCRR and in the manner as specified by SEBI, it is imperative that this
balance be restored and the disproportionate advantage arising out of non-compliance of the
minimum public shareholding requirement not be permitted to be vested with the promoter/
promoter group. In view thereof, in the interest of all investors and the orderly development of the
securities market, it is necessary to pass suitable directions.
21.

It also needs to be noted that SEBI had passed an interim order dated June 04, 2013 against

105 listed companies who did not comply with the minimum public shareholding as stipulated
under rules 19(2)(b) and 19A of the SCRR within the due date i.e., June 03, 2013. In all these
companies, the promoters' shareholding was in excess of 75% and consequently the minimum
public shareholding was less than the stipulated 25%.
22.

In view of the foregoing, I, in exercise of the powers conferred upon me by virtue of section

19 and under Sections 11(1), 11(2)(j), 11(4) and 11(B) of the Securities and Exchange Board of India
Act, 1992 read with section 12A of Securities Contracts (Regulation) Act, 1956, pending passing of
the final order, hereby:
a. direct freezing of voting rights and corporate benefits like dividend, rights, bonus shares, split,
etc. with respect to the excess of proportionate promoter/ promoter group shareholding
(including persons allegedly shown as public shareholders) in the Company, till such time
the Company complies with the minimum public shareholding requirement.
i.

For the purpose of above direction, proportionate promoter/promoter group

shareholding shall be computed on the basis of the public shareholding in the
company; e.g. if public shareholding in a company after the deadline is less than
25%, say 10%, in such case, the proportionate promoter shareholding would be 30%
(i.e.

three

times

the

existing

public

shareholding).

Thus

the

excess

promoter/promoter group holding i.e. 60% shall be frozen till the minimum public
shareholding requirement is complied with.
ii.

In case of more than one entity in the promoter/promoter group in a company, the
excess promoter holding for the purpose of taking action shall be computed on a
proportionate basis. For illustrating the example above, if there are three promoters;
A, B and C with shareholdings of 45%, 35% and 10% respectively; the excess
promoter holding of 60% shall be allocated as follows:
1. A:- (60% multiplied by [45%/45%+35%+10%]) = 30.00%

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2. B:- (60% multiplied by [35%/45%+35%+10%]) = 23.33%

3. C:- (60% multiplied by [10%/45%+35%+10%]) = 06.67%
Total = 60.00%
Based on the above, the excess shareholding of the promoters (including persons allegedly
shown as public shareholders) of the Company that should be frozen is presented in the
following table:
Sl. No.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

Name of the promoter /

shareholder

Shareholding (as on Excess shareholding

March 17, 2015)
to be frozen

Harnarayan Taparia
Harnarayan Taparia (Huf)
Devi Prasad Taparia (Huf)
Devi Prasad Taparia
Rajdulari Devi Taparia
Jaya Krishna Taparia
Jaya Krishna Taparia (Huf)
Kusum Devi Taparia
Madhav Prasad Taparia
Madhav Prasad Taparia (Huf)
Prema Devi Taparia
Sudha Devi Taparia
Shashi Devi Bangur
Shree Kumar Bangur
Harsha Mundhra
Sushil Kumar Taparia (Huf)
Sushil Kumar Taparia
Bela Taparia
Bharat Kumar Taparia (Huf)
Bharat Kumar Taparia
Bhagwati Binani (55 shares)
Veer Enterprises Ltd
Shree Satyanarayan Investment
Co. Ltd.
Om Shri Yogeshwar Mfg. &
Trading Co. Pvt. Ltd.
Abhimanyu Mundhra- Minor
Anant Taparia
Aryaman Taparia- Minor
Saurabh Bangur
Shreekanta Devi Taparia
Virendra Bangur
Satish kumar Mundhra
TOTAL

12.01
4.39
2.67
3.35
5.96
4.86
2.18
4.84
4.73
3.82
4.18
3.42
2.28
1.89
1.65
1.45
2.37
0.31
0.35
4.39
0.00
9.04
1.52
0.83
1.65
1.99
1.16
1.86
3.30
1.86
0.05
94.36

9.86
3.60
2.19
2.75
4.89
3.99
1.79
3.97
3.88
3.14
3.43
2.81
1.87
1.55
1.35
1.19
1.95
0.25
0.29
3.60
0.00
7.42
1.25
0.68
1.35
1.63
0.95
1.53
2.71
1.53
0.04
77.44

b. prohibit the promoters/promoter group including persons allegedly shown as public

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shareholders, as mentioned in the Table in sub-paragraph (a) above and Ms. Devki Devi
Jhawar (who had earlier held shares in the Company) and the directors of the Company
from buying, selling or otherwise dealing in securities of Company, either directly or
indirectly, in any manner whatsoever, except for the purpose of complying with minimum
public shareholding requirement till such time the Company complies with the minimum
public shareholding requirement.
c. restrain the shareholders forming part of the promoter/promoter group including persons
allegedly shown as public shareholders, as mentioned in the Table in sub-paragraph (a)
from holding any new position as a director in any listed company, till such time the
Company complies with the minimum public shareholding requirement;
d. restrain the directors of Company from holding any new position as a director in any listed
company, till such time the Company complies with the minimum public shareholding
requirement.
23.

This order is without prejudice to the right of SEBI to take any other action, including the

following against the Company, their promoters and directors including persons allegedly shown as
public shareholders, as mentioned in the Table in paragraph 22(a) and Ms. Devki Devi Jhawar, or
issuing such directions in accordance with law:
a. Levying monetary penalty under adjudication proceedings;
b. initiating criminal proceedings by way of prosecution proceedings
c. moving the scrip to trade-to-trade segment;
d. excluding the scrip from F&O segment;
e. any other action/direction as may be deemed appropriate.
For the above purpose, this Order shall be treated as a show cause notice and the above persons
may show cause as to why such proposed action should not be initiated against them.
24.

The Board/audit committee of the Company shall, at the end of each quarter, submit

compliance report, to the stock exchanges where the shares of Company are listed, giving the extent
to which compliance has been achieved and the efforts taken therefor.
25.

Copies of this order shall be served on the stock exchanges, depositories and the Company

to enable them to take necessary steps to implement the order. The stock exchanges and
depositories shall collaborate for the purpose of implementing the order. Depositories shall rely on

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the filings made with the stock exchanges for ascertaining the promoters, their shareholding and
public shareholding. Stock exchanges shall provide the aforesaid data to the depositories to enable
them to take necessary action as mentioned above.
26.

The entities/persons against whom this order is being passed may file their replies, if any,

within 21 days from the date of this order. The entities mentioned herein may also, if they so desire
indicate in their replies whether they wish to avail of the opportunity of personal hearing before the
Securities and Exchange Board of India at its Head Office at SEBI Bhavan, Plot C4-A, G Block,
Bandra Kurla Complex, Bandra (East), Mumbai-400051 on a date and time to be fixed on a specific
request.
27.

This order shall come into force with immediate effect.

Date : May 20th, 2015

Place : Mumbai

PRASHANT SARAN
WHOLE TIME MEMBER
SECURITIES AND EXCHANGE BOARD OF INDIA

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