Company Secretary & Compliance Officer
17858 Points
Joined November 2008
No Approval Required.
In your case you have to do following:-
Under takeover code:-
If the Acquisition is less than 5 % of the total voting share capital of the Company:-
No issues, just to inform SE about the acquisition, clearly mention that it is a interse transfer and such and such percentage although acquisition is exempt, however, intimation is being send to you in order to follow good corporate government practice.
if the Acquisition is exceeding 5 % of the total voting share capital of the Company:-
The company has to inform SE atleast 4 working days prior to the date of proposed acquisition.
if the Acquisition is 15 % or more of the voting in the Company:-
The acquirer has to inform to the company and SEBI has to within 21 days of the acquisition along with supporting documents. The company in turn inform to the SE. The Acquirer has also to pay Rs. 25000/- by way of DD or banker cheque payable at mumbai along with this dislcosure.
Under Insider Trading Regulations:-
Any person who holds more than 5% Shares or voting rights in a ny listed company shall disclose to the company in form C the number of shares or voting rights held and change in shareholding or voting rights, within 4 working days of the acquisition, even if such change results in shareholding falling below 5%, if there has been change in such holdings from the last dislcosure more than 2%.
The Company in turn, dislcose to all SE within 5 days of receipt of above information,
CAclubindia
