77 cases of takeover norms violations by promoters in 4 yrs

Capital market regulator Sebi has found 77 cases of violation of takeover norms with regard to purchase of shares by promoters since 2009-10, Parliament was informed today.

Of these, Securities and Exchange Board of India (Sebi) has observed violations and initiated proceedings in 22 cases, in current fiscal so far, Minister of State for Finance Namo Narain Meena informed the Lok Sabha in a written reply.

Besides, the regulator also observed 18 such cases in 2011-12 and 17 cases in 2010-11. The regulator had observed 20 such matters in 2009-10, he said.

"Sebi has not observed any irregularities in acquisition of shares by promoters in open offers. However, Sebi has observed instances where promoters have acquired shares without fulfilling the obligation to make an open offer," he added.

As per Sebi norms on substantial acquisition of shares and takeovers (SAST), promoters of a company are obligated to make an open offer to public pursuant to purchasing of shares.

Responding on a query about amendments in these norms, Meena said that no such proposal is under consideration of Sebi and the extant provisions are considered adequate to deal with any irregularities in acquisition of shares without fulfilling the obligation to make an open offer.