Bourses freeze Orchid Pharma promoters' shares for failing to meet norms

Orchid Pharma on Wednesday said stock exchanges have started freezing the shares of its promoters for the company's failure to comply with market regulator Sebi's minimum public shareholding norms within the stipulated time period.

Under Sebi norms, listed companies are required to have a Minimum Public Shareholding (MPS) of 25 per cent and stock exchanges can take action against companies, including freezing of promoters' shares, for non-compliance.

In a regulatory filing, the company said its directors have been informed that they shall not hold any new position as director in any other listed entity.

"The Directors at the meeting of Board of Directors held on May 10, 2023, have been informed that they shall not hold any new position as director in any other listed entity and that the action of freezing has been initiated by the stock exchanges against the promoters and promoters," Orchid Pharma said.

The company stated that in its effort to maintain minimum public shareholding a