Sharmila Dalmia Parivar Trust

SAT-appeal

• The promoters allegedly violated Takeover Code Regulation 11(1) by failing to make a public announcement after their voting percentage increased by more than 5% due to the company's buyback, despite acquiring no additional shares.
  Appeal disposed of with direction to SEBI to consider the appellants' exemption application under Regulations 3(1)(l) and 4 in accordance with law. · SEBI must not be influenced by observations or findings in the impugned order.
  Appeal: Appeal No. 55 of 2010 disposed of by SAT on 26 October 2010; merits expressly left open.
• Alleged breach of Reg 11(1) for failure to make public announcement after promoter voting rights passively rose from 62.56% to 75% via company buyback.
  Held Reg 11(1) not attracted to passive buyback accretion; no public announcement required · Impugned WTM exemption-rejection order dated 19 Jul 2011 unsustainable