Sebi today exempted two private family trusts owned by the promoter family of AksherChem (India) Ltd from making an open offer to public investors of the firm following transfer of shares between the entities.
Munjal M Jaykrishna Family Trust and Mrugesh Jaykrishna Family Trust - 2 had sought exemption from the Securities and Exchange Board of India (Sebi) from the obligation of making an open offer for the proposed acquisition of 22.28 per cent 43.28 per cent stake in the firm, respectively.
According to Takeover Regulations, acquisition of shares beyond a threshold triggers an open offer.
The regulator accepted the recommendation and granted exemption to the trusts for acquisition of shares without making the open offer.
Seeking exemptions, the trusts said these acquisitions were further to an internal family reorganization and was pursuant to a private family arrangement intended to streamline succession.
They also said this was non-commercial transaction which would not affect the interest of the public shareholders of the target company in any manner.
The proposed transaction, on consummation, would not result in any change of control or management in the target company, the trusts told Sebi.
The application was forwarded by the regulator to a panel of experts who recommended exemption.
