Shareholding gaffe at Glenmark Life: Focus shifts to Sebi new rules

Company promoters bought shares even when they held more than 75 per cent

An apparent shareholding gaffe at Glenmark Life Sciences, which came to light recently, has brought into focus a new system introduced by market regulator Securities and Exchange Board of India (Sebi) that seeks to prevent the inadvertent purchase of shares by company insiders during the ban period.

Glenmark Life Sciences (GLS), a subsidiary of Glenmark Pharmaceuticals and a developer and manufacturer of active pharmaceutical ingredients (APIs), got listed in August 2021, following a Rs 1,500-crore initial public offering (IPO). After listing, the promoter shareholding in the company fell from 100 per cent to 82.84 per cent. After IPO, any company