sebi:WTM/PS/71/CFD/OCT/2015
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Facts / Headnote
Directions modified to permit transfer of promoters' excess shareholding to the Trust; interim directions vacated upon successful transfer within two months
Provisions invoked
- s. 19
- s. 12A
- s. 4A(2)
Holding
The directions issued in the interim order dated June 04, 2013 were modified so as not to hinder the transfer of the promoters' excess shareholding to the Karunya Trust, and the interim directions against the Company, its directors, and promoters shall stand vacated upon completion of the transfer within two months.
Full text
Page 2 of 6 considered and acceded to by SEBI vide letter dated May 17, 2013, subject to certain conditions. Vide this letter, considering the trading volume in the scrip, it was also advised to the Company to explore other options, as well, to meet the MPS requirement within the specified timelines.
Page 3 of 6 difficult for the promoters to divest the shares. The Company had requested BSE to shift the scrip to the normal category for few days in order to facilitate divesting promoters’ shares in the market. However, the same was not acceded to. b. The Company then vide letter dated May 31, 2013, had sought SEBI’s approval for transferring the excess shareholding of the promoters to the ‘Bhogilal Leherchand Foundation’ and ‘Leherchand Uttamchand Trust Fund’, which are engaged in charitable and philanthropic activities. However, the approval was declined by SEBI. The Company vide its letter dated June 03, 2013, had agreed to creation of new trust and transfer of shares to the new trust and again sought approval for the revised proposal.
Page 4 of 6 e. The trustees shall effect sale of the trust property within a period of two years from the date of transfer of securities to the Trust. f. Promoters shall not have any beneficial interest in the Trust. g. The trustees shall have the sole and exclusive power to exercise voting rights attached to the shares of the companies forming part of the trust property. h. Transfer of excess shares to the Trust shall be solely for the purpose of complying with MPS requirements.
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Source: SecMarx — sebi:WTM/PS/71/CFD/OCT/2015. 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.