Tags:
Journalism of Courage
The Sebis order against promoters of companies,which are non-compliant with its minimum public shareholding norms,did not make any material impact on their share prices on Wednesday.
A look into the share price movement of 15 companies,which are part of the 105 non-compliant companies,shows that only five companies saw a fall in their share prices while 10 saw a rise during the day.
Legal experts say that the Sebi order was directed towards individuals and not against the company.
The orders do not impact the company and has been directed towards individuals, said Sandeep Parekh,founder,Finsec Law Advisors.
Major companies that witnessed a rise in their share prices even after the order was passed against their promoters included Essar Ports,Transformers & Rectifiers,Sundaram Clayton,Mundra Lifestyle and BGR Energy. The major companies that witnessed a fall in their share prices after the order included Adani Ports & SEZ,Videocon Industries,Tata Teleservices (Maharashtra) and Omaxe Ltd. Shares of Tata Tele fell by 1.6 per cent during the day.
The Sebi chairman UK Sinha had earlier said that he will take action against the promoters in a manner that the minority shareholders are not impacted.
