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2019 (5) TMI 937 - AT - SEBIViolation of the Takeover Regulation - inter se transfer between promoters made in the open market - appellant’s holding in the Target Company increased from 24.74 percent to 25.04 percent - shares were purchased for a price exceeding the exempted limit, in view of Regulation 3(1) read with Regulation 3(3) of the Takeover Regulations the acquisition has allegedly triggered an open offer - HELD THAT:- Considering all the aspects of the case that violation of the Takeover Regulation is only to the extent of 0.04 percent and that too due to transfer of shares between the promoters via open market, the direction of the WTM to make public announcement to acquire shares would be disproportionate. The directions as provided by Rule 32(1)(b) of the Takeover Regulations as cited supra would meet the ends of justice. The appellant can be directed to transfer 0.04 percent shares i.e. 2000 shares through open market and to direct to deposit an amount of ₹ 3,60,300/- (2000 shares x ₹ 180.15 : purchase price) in the Investor Protection and Education Fund would meet the ends of justice. Order 1. The appeal is hereby partly allowed. The order of the WTM directing the appellant to make public announcement to acquire shares of the target company and to pay interest at the rate of 10 percent as detailed in the order is hereby set aside. 2. Instead it is hereby directed that the appellant shall transfer 2000 shares in open market within a period of 4 weeks and shall deposit an amount of ₹ 3,60,300 in the Investor Protection and Education Fund established by SEBI within a period of six weeks from the date of this order. 3. In default, the amount shall carry interest at the rate of 12 percent p.a. from the date of this order till the date of deposit.
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