Markets regulator Sebi has disposed of an alleged violation case against three entities -- Akshay Poddar, Shradha Agarwala, Indrakshi Trading -- saying the charges of non-disclosure of shareholding could not be established against them.
The Securities and Exchange Board of India (Sebi) received a complaint alleging violation of shareholding norms by owning shares more than a prescribed limit and making false submissions to the regulator earlier.
As per the complainant, these entities, promoters of Gobind Sugar Mills Ltd (GSML), acquired five per cent stake in the company through bulk deals.
Following the acquisition, shareholding increased to 64.86 per cent from 59.86 per cent but they did not make disclosure about the same thereby violating Substantial Acquisition of Shares and Takeovers (SAST) norms as they did not qualify for exemption under the said norms, according to the complaint.
According to SAST norms, transferor(s) as well as the transferee(s), who have been holding shares in the target company for at least three years prior to the acquisition, are eligible for exemption even if some of the transferees are not holding shares in target firm for the last three years prior to such purchase.
"I am of the view that by virtue of the fact the transferor i.E. UPTC and one of the transferees i.E. Akshay Poddar were holding the shares for more than three years prior to the transfer/acquisition," Sebi Adjudicating Officer A Sunil Kumar said in an order, adding that they they should be exempt from SAST Regulations.
Accordingly, the regulator ruled that "the charges leveled against the noticees do not stand established and the matter is disposed of".
