SRM Energy Limited

SAT-appeal

• SEBI directed that promoter and promoter-group unsecured loans could not be adjusted against allotment of shares under the rights issue. The appeal challenged that direction.
  Appeal against SEBI’s direction was heard on whether promoter-group unsecured loans could be adjusted against rights-issue share allotment.
  Appeal: Appeal No. 34 of 2011, decided by the Securities Appellate Tribunal on 6 June 2011; outcome beyond the provided extract.
• SRM Energy allegedly ineligible for rights issue under Reg 4(2) as promoter-group Cals Refineries restrained from issuing equity/altering capital.
  Tribunal held restraint on Cals covered by 'debarred from accessing capital market' under Reg 4(2) · SRM Energy held not eligible to proceed with rights issue till directions against Cals Refineries remain in force