Mumbai: The Securities Appellate Tribunal (SAT) will hear an appeal filed by a Bharti Airtel shareholder on 28 August, seeking greater clarity on a Securities & Exchange Board of India (SEBI) order which exempts South Africa’s MTN from making an open offer to Bharti shareholders.
The hearing in the case was today adjourned to August 28.
“SAT has adjourned the hearing to August 28,” a SAT source said.
In an order dated June 22, market regulator SEBI had said that telecom giant MTN need not make an open offer to Bharti Airtel shareholders in India as its shareholding in the Sunil Mittal-promoted firm would be through the Global Depository Reciepts (GDRs).
SEBI said that the open offer would only trigger once the Global Depository Receipt (GDR’s), issued to MTN and its shareholders by Bharti Airtel are converted into local shares with voting rights.
The appeal was filed by a shareholder, Deepak Mehra, who holds around 200 shares arguing that MTN has to make an open offer to Bharti shareholders. He was represented by noted lawyer Janak Dwarakadas.
The argument put forward by Mehra was that the exemption granted by SEBI to MTN for not making an open offer can not be read literally unless the GDRs are converted into shares having voting rights.