sebi:CO/125/CFD/01/2005
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Facts / Headnote
Application for exemption from Chapter III rejected; acquirers directed to comply with open offer provisions
Provisions invoked
- s. 4(3)
Regulations
- Reg. 7
- Reg. 4
- Reg. 25
- Reg. 4(2)
Holding
SEBI rejected the application dated September 23, 2004 by Jagdish Prasad Agarwalla and PACs seeking exemption from Chapter III for acquisition of 9,50,000 (50%) shares of Abha Property Project Ltd. and directed the acquirers to comply with the open offer provisions as and when they acquire shares/voting rights.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order in respect of acquisition of Abha Property Project Ltd th
1.0 BACKGROUND 1.1 Abha Property Project Ltd. (hereinafter referred to as ‘the target company’) having its registered office at 29, Ganesh Chandra Avenue, 4th floor, R. No. – 407, Kolkata – 700 013, is listed on the Calcutta Stock Exchange Association Ltd. and Delhi Stock Exchange Ltd. 2.0 APPLICATION FOR EXEMPTION 2.1 Karvy Investors Services Ltd., (herein after referred to as ‘Karvy’) a registered Merchant Banker with Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) filed an application dated August 23, 2004 under regulation 4(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as ‘the Takeovers Regulations’), on behalf of Mr. Jagdish Prasad Agarwalla, and other 23 persons acting in concert with him (hereinafter referred to as ‘the acquirers’). The said application was filed for seeking exemption from the applicability of the provisions of Chapter III of the Takeovers Regulations, in respect of the proposed acquisition of 9, 50,000 (50%) fully paid up equity shares from the shareholders of the target company @ Rs. 13 each. 2.2 On examination of the said application, SEBI noticed the following discrepancies: a) the sworn affidavit regarding verification of the information in the application is not in order. b) authority letter from the acquirers in favour of Karvy for filing the application has not been submitted.
c) there are contradictory statements in the application regarding the present shareholding of the acquirers and PACs. d) the grounds for seeking exemption were not given in detail. 2.3 In view of the above, SEBI vide letter dated September 07, 2004, advised Karvy to file a revised application to enable SEBI to process the same. Thereafter vide letter dated September 23, 2004 Karvy filed the revised application. SEBI received the revised application vide letter dated September 23, 2004 from Karvy. 3.0
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Source: SecMarx — sebi:CO/125/CFD/01/2005. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.