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The adjudication proceedings was initiated against Liberty Phosphate, shares of which was acquired by Coromandel International Ltd, as the regulator observed that the company had not complied with the disclosure norms of Regulation 8(3) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 within the due date during the years 1998 to 2004 and 2006.
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While the company had to disclose certain share holding details within 30 days from March 31, of every fiscal year, the actual date of compliance,in the case, has delayed between 1879 to 3568 days, said the order. The violation of compliance happened every year, from 1998 to 2007, according to a copy of the order. While the proceedings were in progress, Coromandel International in December, 2014, submitted an application with Sebi to settle the issue and after discussions, it was agreed to pay Rs 8.5 lakh towards settlement charges.
With the company paying the amount on May 26, 2015, the market regulator issued order disposing of the adjudication proceedings.
According to an announcement of Murugappa Group in January 2013, the company entered into agreement with the promoters of Liberty Phosphate to acquire stakes including promoters' stakes of upto 56.28 per cent and open offer of 26 per cent, with a total cost in the range of Rs 348 crore to Rs 375 crore.
