Market regulator the Securities and Exchange Board of India (Sebi) has disposed of a showcause notice issued to auto firm Premier Automobiles Ltd regarding the alleged violation of takeover regulations and transfer of shares of its French partner, Automobile Peugeot.
Sebi had issued the notice to the auto company on February 5 this year over allegations that Premier Automobiles (PAL) had transferred partner Automobile Peugeot's 31.96 per cent equity stake, or 8.40 crore shares, in joint venture company PAL-Peugeot to itself.
This was allegedly done after the France-based partner quit the JV and gifted its stake to PAL.
As per the showcause notice, it was alleged that the transfer of shares was carried out without permission from at least one of the directors of the French company and without shareholders' approval.
While disposing of the showcause notice, Sebi said it had not found any proof of violations by PAL. It did not give further directions to PAL either.
Both the JV partners held a 31.96 per cent stake in the company, while the remaining 36.08 per cent was in the hands of other investors, including banks and the public.