sebi:DSR/AO-19/2008

SEBI · SEBI · 2006-09-29 · D.S. Reddy, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Allegation against the acquirer not established; matter disposed of without penalty.

Provisions invoked

• s. 15A
• s. 15

Regulations relied on

• SEBI (SAST) Regulations, 1997 — 3(4)

Parties

• acquirer (promoter group member of MKL)

Holding

The allegation that the acquirer filed the report under Regulation 3(4) of SAST with a delay of 900 days was held untenable, as the filing of such report was not required in the facts of the case. The allegation against the acquirer was not established.

Full text

Page 2 of 6 3. Subsequently, the acquirer vide letter dated 29.09.2006, filed a report in terms of Regulation 3(4) of SEBI (Substantial Acquisition of Shares and Takeovers), Regulations, 1997 (hereinafter referred to as SAST), in terms of Regulation 3(1)(b) to claim exemption from the applicability of Regulation 11(1) of SAST. It was observed that the acquirer had filed the report with a delay of 900 days and was alleged that the acquirer had not complied with the provisions of Regulation 3(4) of SAST.

Page 3 of 6 alongwith all the supporting documents to SEBI. However, as the said report was filed by the acquirer with a delay of 900 days, therefore, it was alleged that non compliance with the aforementioned Regulation attracts

Page 4 of 6 CONSIDERATION OF ISSUES AND FINDINGS THEREOF: 9. In the instant matter I note that the acquirer’s individual holding rose from 0.43% to 28.22% subsequent to the acquisition of 20,535,981 equity shares of MKL in the rights issue. The acquirer belongs to the promoter group. The promoter group’s shareholding rose from 91,28,941 equity shares constituting 40.56% of pre-rights issue of total paid up equity capital of MKL to 32,910,720 constituting 45.01% of post-rights issue total paid up equity capital of MKL.

Source: SecMarx — sebi:DSR/AO-19/2008. 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.