sebi:WTMO/39/CFD/08/2006

SEBI · SEBI · 2004-12-13 · T. C. Nair, Whole Time Member

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Facts / Headnote

Application disposed of; exemption from public announcement requirement under regulation 11(1) granted on mitigating circumstances

Provisions invoked

• s. 19

Regulations

• Reg. 7
• Reg. 4
• Reg. 11
• Reg. 10
• Reg. 4(2)
• Reg. 2
• Reg. 11(1)
• Reg. 20(5)
• Reg. 3(1)
• Reg. 4(5)

Holding

The Whole Time Member disposed of the exemption application, holding that insisting on a public announcement under regulation 11 of the Takeover Regulations was not desirable given the mitigating circumstances of the case, notwithstanding that the acquisition had already taken place before exemption could be considered.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER IN THE MATTER OF ACQUISITION OF EQUITY SHARES OF SEAHORSE HOSPITALS LIMITED – EXEMPTION APPLICATION FILED UNDER REGULATION 4(2) OF THE SEBI (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS, 1997.  WTMO/39/CFD/08/2006 1.0 BACKGROUND 1.1 M/s Seahorse Hospitals Ltd. (hereinafter referred to as ‘the target company’) is a company limited by shares incorporated under the Companies Act, 1956, having its registered No 6, Royal Road, Cantonment, Tiruchirapalli – 620 001. The equity shares of the target company are listed on the Bombay Stock Exchange Ltd.  (BSE)  and Madra Exchange Ltd. (MSE). 1.2 M/s Seahorse India Pvt. Ltd. (hereinafter referred to as ‘the acquirer’) belong to the promoter group of the target company and (together with persons acting in concert), holds 24 the total equity capital of the target company. 2.0 APPLICATION SEEKING EXEMPTION 2.1 Vide letter dated December 13, 2004, the acquirer filed an application with the Securities and Exchange Board of India (SEBI) under regulation 4(2) read with regulation 3(1) ( SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, (hereinafter referred to as “the Takeover Regulations’). 2.2 In the application, the acquirer has submitted inter alia the following:- 2.2.1       The target company is in the business of establishing and running hospital. The advancement in technology in the medical field has necessitate

its registered office at No 6, Royal Road, Cantonment, Tiruchirapalli – 620 001. The equity shares of the target company are listed on the Bombay Stock Exchange Ltd. (BSE) and Madras Stock Exchange Ltd. (MSE). 1.2 M/s Seahorse India Pvt. Ltd. (hereinafter referred to as ‘the acquirer’) belong to the promoter group of the target company and (together with persons acting in concert), holds 24.34% of the total equity capital of the target company. 2.0 APPLICATION SEEKING EXEMPTION 2.1 Vide letter dated December 13, 2004, the acquirer filed an application with the Securities and Exchange Board of India (SEBI) under regulation 4(2) read with regulation 3(1) (l) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, (hereinafter referred to as “the Takeover Regulations’). 2.2 In the application, the acquirer has submitted inter alia the following:- 2.2.1 The target company is in the business of establishing and running hospital. The advancement in technology in the medical field has necessitated the up-gradation of the existing equipment and purchase of new equipment. 2.2.2 The target company has been in default of the repayment of its dues to Financial Institutions namely, IDBI, IFCI & ICICI Bank for many years and all its earlier efforts to reach a settlement had failed. 2.2.3 The target company has entered into a comprehensive One Time Settlement (OTS) with the said Financial Institutions. The OTS has helped the target company to settle the debts of Fina

7.1  In view of the above findings, I, in exercise of the powers conferred upon me by virtue of section 19 of the Securities and Exchange Board of India Act, 1992 read with sub - re (6) of regulation 4 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 dispose of the application dated December 13, 2004, filed by Seahorse India Ltd.  T.  WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA  Place:  Mumbai Dated: August 18, 2006 29/10/2025, 15:10 about:blank about:blank 3/3

Source: SecMarx — sebi:WTMO/39/CFD/08/2006. 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.