Uttam Galva's small investors move SAT against ArcelorMittal derecognition

Tribunal refuses any immediate stay; Both BSE and NSE had approved derocognition of L N Mittal-led firm as Uttam Galva promoter last week

TMinority shareholders of Uttam Galva Steels have moved the Securities Appellate Tribunal (SAT) against the stock exchanges’ nod for declassification of ArcelorMittal as a promoter of Uttam Galva.

Both the BSE and the National Stock Exchange (NSE) had approved the declassification last week.

Counsel representing the shareholders submitted that the reclassification was in violation of Listing Regulations. An informal guidance from Sebi had not been sought, and the reclassification was not approved by the shareholders in a general meeting, it was alleged.

However, SAT refused any immediate stay on the promoter declassification nod. According to the order,