Three-year disclosure must for promoter share transfer: Sebi
- Spot-fixing: Chandila was in touch with four sets of bookies, says Delhi Police
- Chinese Premier Li Keqiang arrives, to hold talks with PM on boundary, water issues
- IPL 2013: Delhi Daredevils crash to defeat, finish last
- Jaganmohan's wife attacks CBI, accuses it of working at Congress behest
- Blast accused death: UP govt seeks CBI probe, FIR against 42 persons
Promoters of a listed company need to have made their shareholding disclosures at least three years before any transfer of shares between themselves without triggering an open offer for public investors, Sebi has said.
The capital markets regulator has said that disclosure as promoters in the shareholding pattern filing is a must for at least three years to get the exemption from open offer, even if the company has been listed for a shorter period of time.
If the shareholding of any entity hits 25 per cent threshold limit in a listed company, it is required to make an open offer for an additional 26 per cent shares from the public shareholders of the company.
However, the open offer is not triggered if the threshold is hit because of transfer of shares between two promoters, who have been listed as promoter entities in the company's shareholding pattern filings for at least three years, besides some other conditions, Sebi has said.
The observations have been made by Sebi in an 'interpretive letter' sought by a company, the Commercial Engineers and Body Builders Company Ltd been listed on the BSE and the NSE since October 18, 2010.
As the company has been listed for less than three years, it had sought an "informal guidance" from Sebi about whether one of its promoters, Ajay Gupta, can transfer shares to another promoter and his father-in-law Kailash Gupta without any open offer requirements.
All the promoters together hold 55.81 per cent stake in the company, out of which Ajay Gupta has 20.53 per cent and Kailash Gupta has 23.02 per cent holding.
In its application to Sebi, the company said that Ajay Gupta intends to transfer shares constituting 17.61 per cent stake to Kailash Gupta.
The company further said it believes that the proposed transfer of shares would qualify for exemption from open offer requirements, as their shareholding pattern as promoters could be disclosed only for two years because of the company getting listed only in October 2010.
- Former Ranji player among 3 more held
- Rajasthan Royals to file FIR against tainted trio
- If found guilty, BCCI to ask ICC to erase Sreesanth records
- Top cops among 42 named in death of blast accused
- PM takes tough line on incursion issue
- Security forces blame Maoists, villagers say CoBRA man was killed in 'friendly fire'