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2013 (12) TMI 584 - SECURITIES APPELLATE TRIBUNAL, MUMBAIMinimum public shareholding requirement of 25 per cent to be maintained - Continuous listing requirement - Rule 19A of the Securities Contracts (Regulation) Rules, 1957, r.w. regulation 10 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 - Held that:- Appellant made an application proposing a method to attain mandatory requirement of minimum public shareholding of 25 per cent in all listed companies, as current public shareholding of appellant was 11.2 per cent, which was significantly below prescribed 25 per cent limit – SEBI Rejected the method adopted by the appellant - the Appellant seems to have overlooked the fact that the underlying philosophy behind the requirement of a minimum public holding of 25% is prevention of concentration of shares in the hands of a few market players by ensuring a sound and healthy public float to stave off any manipulation or perpetration of other unethical activities in the securities market which would unfortunately be the irrefragable consequence of the reins of the market being in the hands of a few. The appellant intended to violate law by raising shareholding of P&G Group substantially beyond 75 per cent benchmark and thereafter by relegating Poddar Group to ostensible stature of a public shareholder and once appellant had intentionally broken law, P&G Group proposed to offer an insignificant 4.9 of their shares to public - The Appellant does not comply with the requirement of 25% of public shareholding by adopting a simple and straight forward approach and offering the shortfall in 25% public shareholding to the public through one of the methods elucidated by SEBI - The appellant should comply with requirement of 25 per cent of public shareholding by adopting a simple and straight forward approach and offering shortfall in 25 per cent public shareholding to public through one of methods elucidated by SEBI, or which gets approval of SEBI – Decided against Appellant.
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