Market regulator Sebi has revoked restrictions imposed on Best Eastern Hotels,its directors and promoters,saying that the company has complied with the minimum public shareholding norms.
The Securities and Exchange Board of India (Sebi) had imposed various restrictions on 105 firms including Best Eastern Hotels and their promoters and directors on June 4,2013 after the expiry of deadline for achieving minimum public shareholding of 25 per cent.
The regulator had frozen the voting rights and corporate benefits of promoters and directors of these companies and barred them from holding any new position on boards of listed firms.
It had also warned of further actions including levy of monetary penalties,initiation of criminal proceedings and restricting the trading activities of related stocks.
In an order dated October 9,Sebi said: “…hereby revoke the directions vide the interim order dated June 4,2013 against the company,Best Eastern Hotels Ltd,its directors,promoters and promoter group,with immediate effect.”
Public shareholding in the company on the date of the interim order was 10.40 per cent,it said.
In order to comply with the minimum public shareholding norms,Best Eastern Hotels had opted to divest 12,29,735 equity shares constituting 14.59 per cent of the share capital of the company through an Offer for Sale route on July 24,2013.
Pursuant to the same,the promoters holding was reduced to 75 per cent,thereby raising the public shareholding to stipulated 25 per cent.
Consequently,Sebi has revoked restrictions against Best Eastern Hotels,its directors,promoters and promoter group.