Mumbai, 5 July: Taking action against the promoters of Gillette India for non-compliance with minimum public holding norms, Sebi today ordered freezing all corporate benefits arising out of their stake in the company.
Besides, Sebi also prohibited the promoters and directors of the company, which is part of global consumer goods giant P&G, from dealings in the shares of Gillette India, except for meeting the minimum 25 per cent public shareholding limit, till the time of their compliance to this requirement.
The corporate benefits which would be frozen include voting rights, issuance of bonus shares and dividend payments, Sebi said.
In addition to these interim orders, Sebi also warned the company, its promoters and directors of further penal actions including monetary penalties, prosecution proceedings and restriction in its trading, in the event of continued non-compliance. The company has been asked to present its case before Sebi within 21 days.
The market regulator&’s order follows the disposal of Gillette’s appeal by the Securities Appellate Tribunal (SAT) on 3 July against a previous decision by Sebi, wherein a proposed scheme of shareholding arrangement to meet the norms was rejected. PTI