Sebi exempts Analjit's trust from making open offer

The Securities and Exchange Board of India (Sebi) on Monday exempted the Neeman Family Foundation, a trust set up by Max Financial Services promoter Analjit Singh and his family, from making an open offer to the shareholder of the company.

Neeman Foundation had sought exemption from Sebi in respect of the proposed indirect acquisition and control of 30.29 per cent of the shareholding and voting rights in Max Financial Services.

Under Sebi's takeover regulations, any entity acquiring five per cent or more in any other listed firm is required to come up with an open offer to public shareholders.

Sebi in its grant order said the exemption is subject to conditions. It said there will be no change in control of the target company (Max Financial) pursuant to the proposed transactions as the change will be in the manner of holding the shares by individual promoters.

Sebi clarified that the exemption is limited to making an open offer and shall not be construed as exemption from disclosure requirements under prescribed laws.