Markets regulator Sebi today disposed of proceedings against three entities in a matter related to alleged violations in share trading of Dr Datsons Labs.
According to the Securities and Exchange Board of India (Sebi), the entities -- Finaventure Capital Limited, Kannan Vishwanath and Dr Ashleys Labs Limited -- together purchased 8,02,055 shares, or 5.77 per cent of the Datsons Labs in 2012-13.
While Finaventure Capital and Kannan Vishwanath are the promoters of the Datsons Labs, Dr Ashleys Labs had a common director with Datsons.
By failing to make an open offer regarding this aquisition as they were all connected to each other, they allegedly violated certain norms under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations.
Rejecting the charges mentioned in the show cause notice earlier issued by the regulator, Sebi Whole Time Member Rajeev Kumar Aggarwal said that the notice is vague and ambiguous as it fails to state why the period between quarter ended March 2012 to June 2013 has been chosen for examination wherein the relevant period is a financial year.
Further he said, admittedly, none of the noticees have, individually, breached the 5 per cent threshold limit by virtue of their individual gross acquisitions during the financial year 2012-13.
"The show cause notice is silent as to whether gross purchase by these two promoters (Finaventure Capital Limited, Kannan Vishwanath) increased total promoters' shareholding (who together held more than 25 per cent shares/voting rights in the target company) beyond 5 per cent permissible creeping limit," the order said.
Further, the show cause notice does not allege any concerted action on the part of Ashleys Labs Limited, Finaventure Capital and Kannan Vishwanath to indicate commonality of objective.
Under the Takeover norms, when entities who hold 25 per cent or more shareholding in a company acquire additional 5 per cent or more in that particular firm, in a financial year then they are required to make an open offer.
