Markets regulator Sebi Tuesday exempted a private family trust related to the promoter group of Rossell India Ltd from making an open offer following its proposed acquisition in the firm.
Harsh Mohan Gupta Promoters Family Trust had sought exemption from the obligation of making open offer post acquisition of certain number of shares in Rossell India.
Under the proposed acquisition, the trust would be acquiring 5.10 per cent stake in the firm from promoter Harsh Mohan Gupta.
Besides, Gupta holds 52.60 per cent stake in BMG Enterprises, a promoter company of Rossell India.
Apart from direct acquisition of 5.10 per cent stake in Rossell, the trust will also acquire 52.60 per cent shareholding in BMG Enterprises from Gupta, resulting in an indirect acquisition of shares in Rossell India.
The trust had sought exemptions from making open offer as acquisition of shares beyond a certain threshold triggers open offer obligation under SAST (Substantial Acquisition of Shares and Takeovers) norms.
In its order, Sebi granted exemption to the trust from making the open offer, saying the proposed acquisition would take place pursuant to a private family arrangement intended for succession and welfare of the promoter family.
Besides, the proposed acquisition will not affect the interest of public shareholders and there will be no change in control of the company pursuant to the proposed acquisition, Sebi noted.
The regulator has laid certain conditions while providing exemptions, including that the proposed acquisition should be in accordance with the relevant provisions of the Companies Act and other applicable laws.
"On completion of the proposed acquisition, the proposed acquirer shall file a report with Sebi within a period of 21 days from the date of such acquisition, as provided in the Takeover Regulations 2011," Sebi said.
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