sebi:MO/2/IMD/09/03
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Facts / Headnote
Exemption granted to the Acquirer from complying with Chapter III of the Regulations for the proposed acquisition of 18,225 equity shares representing 1.41% of the Target company from Smt. Shaila B. Paranjape.
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 11
Holding
SEBI granted the Acquirer exemption from the takeover disclosure obligations under Chapter III of the (Takeover) Regulations for the proposed acquisition of 18,225 equity shares (1.41%) of the Target company from Smt. Shaila B. Paranjape.
Full text
acquisition of equity shares would attract the provisions of sub regulation (2) of regulation11 of the Regulations if not exempted.
A.K.BATRA MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA Date: September 9, 2003 Place: Mumbai
4.0 The said application was forwarded to the Takeover Panel on July 21, 2003 in terms of sub- regulation (4) of regulation 4 of the Regulations. The Takeover Panel vide its report dated July 24, 2003 has recommended, inter alia, as under: “The Acquirer is an associate concern of the target company. Both the acquirer and target company are under control of the same management. In the facts disclosed, the proposed acquisition of shares is by means of settlement in repayment of a loan of Rs. 6 lacs advanced by the Acquirer to the deceased Bhaskar Paranjape. It appears that even after the proposed acquisition, the total paid up equity share capital / voting rights of the target company will remain the same as it was before the proposed acquisition. The proposed transaction appears to be nothing but a repayment of loan in kind. Grant of exemption as sought in the circumstances is recommended”. 5.0 I have taken into consideration the application dated July 8, 2003, the material available on record and the recommendations of Takeover Panel. 5.1 It is noted that while the Acquirer itself holds 1,53,195 shares (representing 11.86%), it together with other promoters hold 75.22% shares in the equity share capital of the Target company. 5.2 It is noted that the Acquirer is acquiring the shares only for the purpose of enabling Mrs Shaila B Paranjpe to settle the loan taken by her late husband. The transaction is nothing but a repayment of loan in kind. 5.3 It
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Source: SecMarx — sebi:MO/2/IMD/09/03. 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.