Capital market regulator Sebi has directed promoter group entities of Brand Realty Services to make a public announcement for acquiring additional shares in the company and pay an interest of 10 per cent along with the consideration amount to the exiting shareholders.
The regulator found that Brand Realty's promoter Kamal Manchanda had acquired 2,900 shares (0.097 per cent stake) of the firm on August 25, 2009, triggering the requirement by the promoter group to make a open offer to shareholders within 4 days from the transaction, which they failed to do.
Other than Kamal Manchanda, the company's promoters at the time included Renu Manchanda, Ravi Manchanda, Ramesh Chand Girdhar, Pratibha Gupta, Krishan Lal Manchanda, Aruna Manchanda and Jagdish Chander Manchanda.
The entities, including some former promoters, have to make a public announcement for acquisition of additional shares of the company within 45 days, Sebi said in an order.
The regulator noted that "since the public announcement now would provide a delayed exit opportunity to shareholders of the target company, the noticees should pay interest on the consideration amount to shareholders who tender their shares in the open offer and who are eligible for interest".
Accordingly, Sebi has directed Brand Realty's promoters to "make a public announcement to acquire shares of the target company...Within a period of 45 days from date of this order".
"The noticees shall, alongwith the consideration amount, pay interest at the rate of 10 per cent per annum from December 1, 2009 to the date of payment of consideration, to the shareholders who were holding shares in the target company on the date of violation and whose shares are accepted in the open offer, after adjustment of dividend paid, if any," the market regulator added.
Sebi had conducted an examination in the case for the period September 30, 2008 to December 31, 2010.
