Sebi penalises 105 companies for missing shareholding rule deadline

In the order issued late on Tuesday,SEBI said promoters of companies that failed to meet the deadline would be prevented from receiving dividends and exercising their voting rights on excess shares that breach the 75 percent limit.

Promoters who missed the deadline will also not be allowed a board seat in any listed company in India.

SEBI also prohibited promoters and directors of the defaulting companies from dealing in shares of their companies,unless done explicitly to reduce their stake.

However,these penalties would cease to apply if the companies cut down their stakes to 75 percent.