Markets regulator Sebi has granted exemption to Ravi Puravankara Trust from the obligation of making an open offer following the proposed acquisition of 75 per cent stake in Puravankara Ltd.
This comes after Ravi Puravankara, on behalf of Ravi Puravankara Trust, sought exemption from the applicability of SAST (Substantial Acquisition of Shares and Takeovers) in the matter of proposed acquisition of shares and voting rights in Puravankara Ltd.
The proposed acquisition involves transfer of 17,78,52,904 equity shares representing 75 per cent stake in Puravankara Ltd to the trust, and the transaction will result in a direct acquisition of shares by the trust in the company attracting the Takeover Regulations.
Sebi has granted exemption to the trust from making an open offer as there will be no change in control of Puravankara pursuant to the proposed share purchase.
In addition, the regulator noted that the total preacquisition and postacquisition shareholding of the promoters in the firm will remain the same.
"There will also be no change in the public shareholding of the target company," the Securities and Exchange Board of India (Sebi) noted.
The regulator, in an order dated February 12, granted "exemption to the proposed acquirer, viz Ravi Puravankara Trust, from complying with the requirements of ... the Takeover Regulations with respect to the proposed acquisitions in the target company, viz. Puravankara Ltd."
This is subject to certain compliance with the relevant provisions of the Companies Act, it added.
In a separate order, the regulator on Thursday imposed a penalty of Rs 10 lakh on Indovision Securities for misusing clients' funds as well as its failure to segregate clients' funds and own funds.
By doing so, the stock broker violated the Securities Contracts Regulation Act.
In another order, Sebi levied a fine of Rs 5 lakh on LKP securities for violating stock broker norms, including misutilisation of clients funds.
"The noticee (LKP Securities) has in fact misutilised client's funds, did not maintain data pertaining to running account settlement of clients and had also utilised securities pledged for clients for purposes even other than that of the said clients," Sebi noted.
Through such activities, LKP Securities has violated stock brokers' norm and Securities Contracts Regulation Act.
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