Sebi asks 2 entities to make offer for Parsoli shareholders

Sebi has asked Germany-based Baader Bank and Gulf Investment Services (GIS) to make an open offer to shareholders of Parsoli Corp as they have been found in violation of takeover regulations.
The regulator also said that the company's promoters, their associates and family members cannot be allowed to tender their shares in the open offer.
In 2006, pursuant to preferential allotment, Baader Bank and Gulf Investment Services (GIS) had acquired substantial stake in Parsoli. While Baader Bank's shareholding rose to 24.09 per cent, GIS purchased 20 per cent stake.
Sebi Whole Time Member Rajeev Kumar Agarwal said that at the relevant time shares of the target company were frequently traded on the stock exchange.

"I do not find any reason to deviate from the normal rule to make a public announcement to acquire shares of the target company (Parsoli)," he said in an order on Wednesday.
Since the public announcement now would provide a delayed exit opportunity to the shareholders of the target company, the noticees should pay interest on the consideration amount to the shareholders who tender their shares in the open offer and who are eligible for interest as per law, he noted.

As per Sebi norms, if the shareholding of an entity in a listed firm goes beyond 15 per cent then public announcement for an open offer has to be made.

"The noticees shall, alongwith the consideration amount, pay interest at the rate of 10 per cent per annum from October 30, 2006 to the date of payment of consideration, to the shareholders who were holding shares in the target company on the date of violation and whose shares are accepted in the open offer, after adjustment of dividend paid, if any," the order said.
The regulator said that the open offer should be made within 45 days from the date of the order.
In 2013, Sebi had cancelled registration of Parsoli Corp as a broker on the exchanges for alleged violations of securities market regulations.