Diageo has submitted its replies to clarifications sought by SEBI on the open offer for United Spirits and the market regulator would take a decision in due course
Mumbai: Global liquor major Diageo Plc has submitted details sought by market regulator Securities and Exchange Board of India (SEBI) regarding its Rs5,441 crore open offer for buying stake in Vijay Mallya-led United Spirits, reports PTI.
The open offer to buy 26% stake in United Spirits, which was to start yesterday, was postponed pending final approval from SEBI.
“Diageo has submitted its replies to clarifications sought by SEBI on the open offer for United Spirits. SEBI will take a decision in due course,” a source said.
Last month, SEBI had asked for some clarifications on the from Diageo’s open offer, part of a deal to buy up to 53.4% stake in United Spirits.
On Monday, United Spirits had informed the stock exchanges that the open offer has been postponed.
JM Financial, the manager for the open offer, has said that since the “final observations from SEBI” are awaited, the schedule has been revised.
“...the revised schedule of activities will be intimated in due course,” according to a filing made by United Spirits to the BSE.
As per the detailed public statement (DPS) issued in November last year, Diageo’s open offer was to begin yesterday.
Diageo is to acquire a 27.4% stake in United Spirits, through a combination of purchase of shares from existing promoters and a preferential allotment of share, for Rs5,725.4 crore.
Any acquisition of 25% or more stakes in a listed company triggers a mandatory open offer for purchase of additional 26% stake from the public shareholders and the same needs to be cleared by the market regulator.
The proposed open offer for an additional 26% stake in USL entails purchase of about 3.8 crore shares at a price of Rs1,440 per share, totalling to Rs5,441 crore, by Relay BV, a wholly owned subsidiary of Diageo.
United Spirits, the country's largest spirits company, is part of Vijay Mallya-led UB Group, whose aviation venture Kingfisher Airlines is grappling with turbulent times.
SEBI found that Rotomac Global acquired 40 lakh shares representing 24% stake in FDIL from four entities in October 2009, but failed to make a public announcement
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs5 lakh on Rotomac Global for allegedly failing to make a public announcement regarding its stake buy in Flawless Diamonds India (FDIL), reports PTI.
SEBI had found that Rotomac Global had acquired 40 lakh shares representing 24% stake in FDIL from four entities on 30 and 31 October 2009, but failed to make a public announcement.
“...it is established beyond doubt that the noticee (Rotomac Global) acquired 40 lakh shares i.e. 24% shareholding/voting rights of the FDIL, from aforesaid four entities on 30 and 31 October 2009 and did not make the public announcement...” SEBI said in its order.
As per SEBI norms, no entity can acquire shares which entitle it to exercise 15% or more of the voting rights in a company, unless it makes a public announcement to the company within four working days of the transaction.
Rotomac Global had acquired the shares from Abhishek Jain, Jalak Jain, Manmohan Gems and Sethia Gems.
SEBI also found that the shares so acquired by Rotomac Global were transferred back to these four entities between December 2009 and March 2010.
The entity had informed the regulator that the purchase was made through a pledge agreement with the transferors and it did not acquire voting rights as the said shares were under pledge to it.
It said the shares were pledged for the purpose of providing margin towards its trading in option and futures market and, therefore, it is not liable to make any public announcement.
However, SEBI observed: “The pledgee cannot further transfer/sale the shares unless the pledge is invoked...in the present case, the mandatory procedure for pledge was not followed and apparently by virtue of being not a valid pledge, the shares were further transferred by the noticee to the same entities as is evident from the Demat statements.”
The regulator has also directed Bajaj Allianz to put in place a system so that all claims, papers and documents are properly docketed
New Delhi: Taking serious note of violation of claims servicing regulations by Bajaj Allianz General Insurance, the Insurance Regulatory and Development Authority (IRDA) has asked it to “scrupulously adhere” to the norms, reports PTI.
“The competent authority has taken serious note of your company’s violation of regulations... of IRDA (PPI) Regulations, 2002, in the matter,” it said in response to complaint filed by an individual with regard to delay in settlement of motor insurance claim.
IRDA, however, did not impose any monetary penalty.
“While no further charges are pressed for the moment, you are specifically advised to scrupulously adhere to IRDA PPI Regulations, 2002, in all matters regarding claims servicing,” it said in a communication to Tapan Kumar Singhel, CEO, Bajaj Allianz General Insurance Company.
The regulator has also directed Bajaj Allianz to put in place a system so that all claims/papers/documents are properly docketed.
IRDA guidelines require that general insurance claims should be settled in 30 days of the filing of claims by the insured person.