 "Sebi exempts Motilal Oswal Family Trust from open offer requirement")
Markets regulator Sebi has exempted Motilal Oswal Family Trust from the obligation of making an open offer with respect to the proposed acquisition of shares of Motilal Oswal Financial Services.
This comes after the family trust filed an application with the regulator seeking exemption from the applicability of SAST (Substantial Acquisition of Shares and Takeovers) regulations in the matter of proposed acquisition of shares and voting rights in Motilal Oswal Financial Services Ltd (MOFSL).
Under the proposal, Motilal Oswal intends to gift or settle his shareholding in Passionate Investment Management Private Limited (PIMPL) to Motilal Oswal Family Trust, a private family trust.
Oswal, who currently holds 50 per cent shares in PIMPL, proposes to gift all the equity shares held by him in PIMPL, which owns 56.78 per cent stake in MOFSL.
Consequent to the proposed acquisition of 50 per cent stake of PIMPL by Motilal Oswal Family Trust from Oswal, there will be an indirect acquisition of control over MOFSL by the family trust.
In an order passed on Monday, the regulator granted exemption to the family trust as the objective of the proposed acquisitions is to streamline the succession of Motilal Oswal Family and their respective lineal descendants.
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It has been noted that there will be no change in control of the target company (MOFSL) following the proposed acquisition and pre and postacquisition, shareholding of the promoters in MOFSL will remain the same.
Accordingly, the Securities and Exchange Board of India (Sebi) has granted "exemption to the proposed acquirer, viz. Motilal Oswal Family Trust, from complying with the requirements of ... the SAST Regulations with respect to the proposed acquisitions in the Motilal Oswal Financial Services Ltd."
The exemption has been granted subject to certain conditions, including compliance with the provisions of Companies Act and other norms.