Sebi exempts Prozone promoter's trust from making open offer

Capital market regulator Sebi today exempted Nikhil Chaturvedi Family Trust from making an open offer to shareholders of Prozone Capital Shopping related to the proposed acquisition of 9.21 per cent stake in the firm.
The stake-buy plan involves Prozone Capital promoter Nikhil Anupendranath Chaturvedi transferring his holding in the company to the private family trust by way of gift.
The acquisition would increase the shareholding of Nikhil Chaturvedi Family Trust from nil to 9.21 per cent. This is beyond the 5 per cent limit permissible in a fiscal year and generally obligates the acquirer to make an open offer under Sebi takeover norms.

In an order today, the Securities and Exchange of India (Sebi) said that "there would be no change in the management or control of the target company (Prozone Capital Shopping Centres) and the...Proposed transaction would not affect or prejudice the interests of the public shareholders of the target company".
Consequently, Sebi said that it is granting "exemption to the proposed acquirer, the Nikhil Chaturvedi Family Trust from complying with the requirements of...The Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 with respect to its proposed acquisition of 1,40,50,955 shares of the target company, namely Prozone Capital Shopping Centres Limited by way of gift".

Chaturvedi as trustee of Nikhil Chaturvedi Family Trust had filed an application with the market regulator seeking an exemption from making an open offer.

The reason for the proposed transfer to the trust was stated to be an internal reorganisation within the Nikhil Chaturvedi Family. The beneficiaries of the trust are Chaturvedi's wife Shital Chaturvedi, his minor daughters and his bloodline descendants.
Presently, Chaturvedi holds the stake in Prozone Capital though Topspeed Trading Company and Floro Mercantile.
Following the transfer of shares, the promoter group stake in Prozone Capital would stand at 34.62 per cent.