Connect with Us
Moneylife - Facebook Moneylife - Twitter Moneylife - Linkedin Moneylife - Youtube Moneylife Rss feed

Moneylife » Investing » Regulations » SEBI exempts shareholder from complying with open offer rules

SEBI exempts shareholder from complying with open offer rules

    • 0 Comments, Be the first to comment

MDT/PTI | 10/10/2012 11:41 AM | 

Naiker had sought exemption from SEBI regarding acquisition of 5.62 lakh shares representing 45% stake from existing promoters of Hemakuta Industrial Investment, which have not been trades since 2002

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has exempted Kannan Krishnan Naiker, an individual shareholder, from complying with certain regulatory procedures while making an open offer to acquire an additional 45% stake in Hemakuta Industrial Investment, reports PTI.
The exemption for Naiker has been given on the basis that his proposal is 'reasonable' and would provide an exit opportunity for the company's existing shareholders.
According to a SEBI order dated 8th October, shares of Hemakuta Industrial Investment listed on the BSE have not been traded since 2002 and there are only 245 public shareholders in the entity.
"In my view, therefore, the revised proposal of the applicant is reasonable and in the facts and circumstances of the case the proposed acquisition merits relaxation from strict compliance of procedures specified under regulations 13, 14, 15, 16 and 18 of the Takeover Regulations with regard to public announcement and filing / dispatch, etc. of letter of offer," SEBI whole time member Rajeev Kumar Agarwal said.
As per norms, an entity acquiring 15% or more shares in a listed company has to make an open offer to shareholders so as they have an option of exiting.
However, the exemption would be subject to various conditions that have to be fulfilled by Naiker.
SEBI said that Naiker had proposed to provide exit opportunity to all the public shareholders of the company by making an individual offer and had sought exemption only from the strict compliance of regulations to save costs.
"The revised proposal would be in the interest of public shareholders and he (Naiker) does not intend to deprive them of any exit opportunity," SEBI said.
Naiker had sought exemption from the regulator regarding acquisition of 5.62 lakh shares representing 45% stake from the existing promoters of Hemakuta Industrial Investment.
The acquisition would increase the shareholding of Naiker from 24.4% to 69.4%.

Post Comment
Be the first to comment
Daily Newsletter

1,00,000 Readers

Follow Moneylife
DNL facebook icon DNL linked in icon DNL twitter icon DNL youtube icon DNL rss icon
Moneylife Magazine

What's your say?

Can Governor Dr Rajan's challenge make the RBI staff to bring in efficiency in work culture at the 81-year old central bank?
Can't Say
Enter Code : secure code
    change code

What you said

Is the govt’s decision to withdraw LPG subsidy for taxpayer with income of over Rs10 lakh fair?

Thanks for casting your votes! View Previous Polls

Join Over 100,000 Awesome Readers

  1. News that Mainstream media does not always cover
  2. Views that are bold and unbiased
  3. Reports that focus on your interests as consumer, investor & citizen