Sebi Asks Sarla Performance Promoters to Sell Certain Shares
Mumbai: Finding them in violation of takeover norms, the Securities and Exchange Board of India (Sebi) has directed eight promoter entities of Sarla Performance Fibres to sell 27,633 shares as part of protecting investor interests.
The Sebi direction would be applicable on Hindustan Cotton, Satidham Industries, Madhusudan Jhunjhunwala, Krishnakumar Jhunjhunwala, Vrinda K Jhunjhunwala, Sarladevi M Jhunjhunwala, Krishnakumar & Sons -HUF and Madhusudan Jhunjhunwala HUF.
The capital market watchdog has asked these entities to sell jointly or severally 27,633 shares (0.40 per cent) in Sarla Performance Fibres to parties that are not connected to them.
The sale should be done in small lots in trenches on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) ensuring that such sale does not disturb the market equilibrium.
Besides, Sebi in its order said proceeds from the sale, to be completed in three months, should be transferred to the Investor Protection and Education Fund.
The case relates to violation of takeover norms. These entities held 43,73,167 shares or 62.92 per cent of shares capital of Sarla Performance as on August 6, 2009.
Further, from August 6, 2009 till September 23, 2011, two of the promoter entities - Madhusudan Jhunjhunwala- HUF, and Satidham Industries - acquired an additional 27,633 shares.
Acquisition of 27,633 shares without making public announcement violated takeover norms, especially since the regulator had cleared the ambiguity regarding applicability of these rules on August 6, 2009, according to Sebi.
As per August 6, 2009 clarification, an acquirer may purchase additional shares or voting rights up to a maximum of 5 per cent voting rights in a target company in one or more tranches, without any restriction on the time-frame.
"Thus, the public announcement, if made now would be a mere formality. Considering this fact and other mitigating factors."
"... I am of the view that a direction to sell 27,633 shares of the target company in small lots on the concerned stock exchange and transfer of the entire proceeds of such sale of shares to the Investor Protection and Education Fund would be commensurate with the violation as found in this case," Sebi Whole-Time Member Rajeev Kumar Agarwal said in his order.
Noting that since the fund is utilised for the purpose of protection of investors and promotion of investor education and awareness, he said he was of the "considered view that in the facts and circumstances of this case the above directions would be in the interest of investors".
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
