Sebi decides against granting exemption to S H Kelkar and Co promoters

Markets regulator Sebi today decided against granting exemption from making open offer to two promoters of S H Kelkar and Company with regard to acquisition of shares in the firm.

The promoters are Ramesh Vinayak Vaze Family Trust and Kedar Ramesh Vaze Family Trust.

The promoters had submitted an application dated January 2, 2017 with Sebi seeking exemption from making an open offer as required under the SAST (Substantial Acquisition of Shares and Takeovers) Regulations for proposed acquisition of shares and voting rights in S H Kelkar and Company.

According to a Sebi order, the promoter group held 57.64 per cent of the equity shares and voting rights in the firm as on the date of application.

Ramesh Vinayak Vaze Family Trust and Kedar Ramesh Vaze Family Trust intended to acquire 27.49 per cent and 17.23 per cent, respectively, of the equity shares (direct and indirect) in the company from the existing shareholders who are part of the promoter group.

In its order, Sebi said the transferors of the shares have not been named as promoters in the shareholding pattern filed by S H Kelkar and Company with the stock exchanges for the last three years as the firm was listed less than three years ago.

"I am of the opinion that granting exemption from the said requirement would defeat the very objective why the norms were made stricter," Sebi Whole Time Member G Mahalingam said.

"... I do not find merit in the application read with the addendum to the application dated April 28, 2017 filed by the proposed acquirers (Ramesh Vinayak Vaze Family Trust and Kedar Ramesh Vaze Family Trust) seeking exemption from the requirement under... the Takeover Regulations with respect to the proposed acquisition," he said.

Accordingly, the Securities and Exchange Board of India (Sebi) rejected "the request for exemption from complying with the requirements" of Takeover Regulations as made by the two promoters with respect to the proposed acquisition of voting rights in S H Kelkar and Company.