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BW Businessworld

Gillette India Shares Fall 3% As Sebi Imposes Penalties

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Shares in Gillette India Ltd fell 3 per cent after the market regulator imposed penalties on the company's promoters for failing to meet India's rule that all listed private companies must have a minimum 25 per cent owned by public shareholders.

As per the order issued on Friday, Gillette India promoters will be denied voting rights and dividends for those shares that surpass the 75 per cent ownership limit, in line with similar penalties the market regulator issued on other non-compliant companies last month.

The Securities and Exchange Board of India's (Sebi) order on Friday, 5 July 2013 follows a ruling from Securities Appellate Tribunal denying Gillette India's plea to classify one of its promoters as a public shareholder in a bid to meet the minimum public shareholding law.

Gillette India promoters own close to 89 per cent of the companies, including a 75.9 per cent stake held by Procter & Gamble Co.

(Reuters)