If a Private Company , whose Director belonging to the promoter group of a listed Company , can such Private Company buy the shares of that listed Company? if so, what are the Compliances that are attracted as per Companies Act, Sebi (SAST), Sebi (Insider Trading).
Kindly reply to this Qurey as early as possible
TG S. Yamini Setty
Dear Yamini,
1. A private company may invest in other body corporates by subscribing to shares by virtue of sec.372A.
2. SAST regulations are applicable if the company acquires more than 25% of shares of listed company and subject to threshold limits for attracting open offer.
3. SEBI notified insider trading regulations, 1992 to prohibit the practice of insider trading and incorporated various regulations in the form of compliances. What you have to do is just follow regulations and comply them, do not violate, and most important point is the director shall act in good faith.
| Originally posted by : Yamini | ||
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If a Private Company , whose Director belonging to the promoter group of a listed Company , can such Private Company buy the shares of that listed Company? if so, what are the Compliances that are attracted as per Companies Act, Sebi (SAST), Sebi (Insider Trading). Kindly reply to this Qurey as early as possible TG S. Yamini Setty |
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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