sebi:1300263025738

SEBI · SEBI · 2003-02-26 · A.K. BATRA, MEMBER, Securities and Exchange Board of India

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Facts / Headnote

Further proceedings against Snowcem India Ltd dropped

Provisions invoked

• s. 11B
• s. 11
• s. 19

Regulations

• Reg. 2(1)(e)
• Reg. 2(1)

Parties

• Snowcem India Ltd

Holding

Further proceedings against Snowcem India Ltd were dropped. SIL was held not to be a person acting in concert with KIL within the meaning of Regulation 2(1)(e).

Full text

The representatives of SIL appeared and reiterated their submissions made vide letters dated 26.2.2003 and 17.10.03. FINDINGS 7. I have carefully considered the material available on record. I note that Regulation 2(1)(e) of the said Regulations defines person acting in concert as under :- (e) "person acting in concert" comprises - 1. persons who, for a common objective or purpose of substantial acquisition of shares or voting rights or gaining control over the target company, pursuant to an agreement or understanding (formal or informal), directly or indirectly co-operate by acquiring or agreeing to acquire shares or voting rights in the target company or control over the target company;

as a person acting in concert with KIL within the meaning of Regulation 2(1) (e) of the said Regulations. In view of this, I feel that it is a fit case to drop further proceedings against SIL. Therefore, in exercise of powers conferred upon me under Section 19 read with Section 11 and Section 11B of SEBI Act, 1992, it is hereby directed that the further proceedings against Snowcem India Ltd be dropped.

2. Without prejudice to the generality of this definition, the following persons will be deemed to be persons acting in concert with other persons in the same category, unless the contrary is established : i. a company, its holding company, or subsidiary or such company or company under the same management either individually or together with each other : ii. a company with any of its directors, or any person entrusted with the management of the funds of the company; iii. directors of companies referred to in sub-clause (i) of clause (2) and their associates; iv. mutual fund with sponsor or trustee or asset management company; v. foreign institutional investors with sub account(s); vi. merchant bankers with their client(s) as acquirer ; vii. portfolio managers with their client(s) as acquirer ; viii. venture capital funds with sponsors ; ix. banks with financial advisors, stock brokers of the acquirer, or any company which is a holding company, subsidiary or relative of the acquirer ; Provided that sub clause (ix) shall not apply to a bank whose sole relationship with the acquirer or with any company, which is a holding company or a subsidiary of the acquirer or with a relative of the acquirer, is by way of providing normal commercial banking services or such activities in connection with the offer such as confirming availability of funds, handling acceptances and other registration works ; x. any investment company with any person who has an interest as director, fund manage

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