Sebi freezes voting rights of Gillette India promoters - Livemint

Mumbai: The Securities and Exchange Board of India, or Sebi, on Friday, barred promoters of Gillette India Ltd from dealing in capital markets and directed a freeze on their voting rights and corporate benefits such as dividend, rights, bonus shares and split for non-compliance with public shareholding norms before the deadline that expired 3 June. All private listed firms are required to have a minimum public shareholding of 25%. Sebi's interim order follows a Wednesday ruling by the Securities Appellate Tribunal, or SAT, upholding the market regulator's earlier decision on Gillette with regard to non-compliance with public holding norms. Poddar Group and the P&G group hold 12.9% and 75.9% in Gillette, respectively, with the rest being with the public. On 10 October, 2012, Gillette India had proposed a three-stage plan to lower the promoter holding to 75%. According to the proposal, the Poddar Group was to first transfer 4% of its shares to the P&G group, which being an inter-se transfer of shares among promoters, would be exempt from open-offer obligations. Following the transfer, the Poddar Group was to give up its rights as a promoter, and then, in order to comply with the public holding norms, the P&G group would sell 4.9% of its stake to the public, bringing down the overall promoter holding to 75%. This proposal was rejected by Sebi as the process allegedly did not follow the spirit of the law. SAT agreed with Sebi's decision on Wednesday. As per the latest Sebi order, the freeze on voting rights and corporate benefits will be in proportion to the excess promoter holding in Gillette and will be effective as long as the company remains non-compliant with public holding norms. The order also restrains the company's promoters form holding any positions as directors in any listed firm. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNH1EPtSdRMh8Q9NiUQ42jUvFbAgcg&url=http://www.livemint.com/Companies/9bBtRJhFt2aWlKqu4xf2BI/Sebi-freezes-voting-rights-of-Gillette-India-promoters.html

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