SAT to hear Fresenius Kabi appeal against Sebi on Jun 24

The Securities Appellate Tribunal (SAT) will on June 24 hear healthcare firm Fresenius Kabi Oncology's appeal against Sebi's order related to non-compliance with 25% minimum public shareholding norms.

Fresenius Kabi Oncology has also sought permission from the tribunal to delist its shares from the stock exchanges.

The company had approached the tribunal earlier this week against Sebi's move and had sought approval for its delisting plans. The tribunal has scheduled the hearing on the matter for June 24.

Senior Advocate Janak Dwarkadas is the counsel for Fresenius Kabi Oncology.

The company, which is engaged in the business of cancer research and anti-cancer products, is among the 105 companies facing action of Sebi for not having complied to the minimum public holding requirements within the deadline of June 3, 2013.

While the company had earlier sold 9% promoter stake through an Offer for Sale (OFS), one of the special routes provided by Sebi to the companies for complying with the minimum public shareholding norms, it later proposed to delist its shares from the stock exchanges rather than selling a further 6% to meet the listing requirement.

The regulator, however, refused permission to the company for its delisting plans, as it had benefitted from a specially designed OFS route for expanding the public float of shares.

The company has been saying that its decision to get delisted was triggered by certain sudden 'extraneous' events.

The total promoter holding in the company currently stands at 81%, as against a maximum of 75% as per Sebi's minimum 25% public shareholding requirement for the listed private sector companies.

Another company, Gillette India, has also approached SAT against Sebi in relation to the minimum public holding norms and the company has been given an interim relief from complying with this requirement till a further direction.

Gillette had moved SAT after Sebi rejected a proposal for complying to the norms, wherein the company had proposed de-classifying one of its senior executive as a promoter entity to bring down the overall promoter shareholding.

The matter is before SAT and therefore Gillette does not figure among the 105 companies against whom Sebi announced penal actions on June 4.