Kirti Mishra (Student) (23 Points)
20 March 2017Promoter A- sells 4 crores shares to Promoter B, Promoter B again sells back to Promoter A the same no. of shares. Whether above is allowed ? If yes, what all process are involved? Within what time limit.
If no then explain with reason
Kindly give me answer
Jaikishan V. Wadhwani
(Company Secretary)
(154 Points)
Replied 20 March 2017
Yes, the promoters Can do So. There is no provion related to restriction on transfer under companies act 2013. AS doing such transfer not make change in any total promter contribution thus such transfer is fully valid.
But after this transfer, the promoter who sells such share are INeligible to take part in preffential attotment for further 6 months.
S R BALASUBRAMANIAN
(PCS)
(56 Points)
Replied 20 March 2017
DEAR SIR
AS PER YOUR REPLY THE TRANSFERS BETWEEN A AND B PROMOTERS ARE ALLOWED.
COULD YOU PLEASE ENLIGHTEN UNDER WHAT PROVISIONS THE SELLER IS NOT ELEIGIBLE TO TAKE PART IN PREFERENTIAL ALLOTTMENT FOR A PERIOD OF 6 MONTHS.
THANKS IN ADVANCE
Jaikishan V. Wadhwani
(Company Secretary)
(154 Points)
Replied 21 March 2017
As per Regulation 72 of the Of SEBI (ICDR) Regulation , any person or promoter who has sold his Eq share of the issuer During previous 6 moths then person And promoter or promoter group is imeligible for allotment of Preferential issue.
This way Promoter is not eligible for preferential allotment for 6 months.
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