Mumbai: The Securities Appellate Tribunal (SAT) on Friday asked India’s market regulator to provide reasons for rejecting Gillette India’s proposal for meeting the minimum public shareholding requirements.
Last year, the Securities and Exchange Board of India, or Sebi, rejected Gillette India’s proposed transactions to comply with the minimum public shareholding norms as laid down in the Securities Contracts (Regulation) Rules, without citing any specific reason. Following this, Gillette India approached SAT.
“The grievance of the appellant is that the request made by the appellant has been summarily rejected without assigning any reasons,” SAT said in its order on Friday.
“We therefore direct the board (Sebi) to consider the present appeal as a representation made before the board and, after considering the representation, pass a speaking order on the request made by the appellant in accordance with law. It is made clear that we are not expressing any view on the merits of the case,” it said.
SAT observed that if the request contained in October 2012 submitted by Gillette did not find favour with Sebi, then “the reasons therefore should have been conveyed to the appellant”.
In an August 2012 circular, Sebi had said that listed firms “desirous of achieving the minimum public shareholding requirement through other means” could approach the regulator.