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2015 (3) TMI 686 - AT - Companies LawViolation of clause 16 of the listing agreement - Time gap between the book closure and record date for interim dividend - Held that:- On perusal of clause 16 of the listing agreement, it is seen that in a year there could be more than one book closure for the purpose of declaration of dividend or the rights issue or bonus shares, etc. If more than one book closure is postulated under clause 16, then obviously time gap of 30 days under clause 16 would be referrable to the time gap between two book closures. Fact that the word ‘and’ is used between the words ‘two book closures’ and ‘record dates’, it cannot be inferred that the time gap should be between a book closure and a record date. If the intention was to keep the time gap of 30 days between a book closure and a record date, then the word “two” would not have been used prior to the words “book closures”. In other words, the very fact that the word “two” is used prior to the words “book closures” is suggestive of the fact that the time gap is intended between two book closures and two record dates and not between a book closure and a record date. Since SEBI is permitted to pass order on merits on the interpretation of clause 16 of Listing Agreement, we see no reason to keep the appeal pending. SEBI is directed to pass order on merits after hearing the appellant.
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