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Sast regulations, 2011

abhishek kadam (Self employed) (151 Points)

21 February 2013

Dear All,

Our is a Public listed Company and one of our Public limited Company which is not a subsidiary, has purchased shares of our Company and we have similar director in both the Company. Do we need to inform SEBI and the relative Stock Exchanges regarding the Substantial Acquisition of Shares...???

Pls help...

Regards,

Abhishek Kadam

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7 Replies

ACS Deepika Chowdhary (Company Secretary) (280 Points)
Replied 22 February 2013

Originally posted by : abhishek kadam
	Dear All, Our is a Public listed Company and one of our Public limited Company which is not a subsidiary, has purchased shares of our Company and we have similar director in both the Company. Do we need to inform SEBI and the relative Stock Exchanges regarding the Substantial Acquisition of Shares...??? Pls help... Regards, Abhishek Kadam

Dear Abhishek

Your query will attract the provisions of insider trading regualtions subject to shareholding percentage acquired. About SAST Reg, 2011 also, Would be able to comment if you could tell what percentage of sharholding has been acquired?

abhishek kadam (Self employed) (151 Points)
Replied 22 February 2013

Dear Deepika Mam,

The unlisted group company of our is already holding 5% and now they want to further purchase shares in our listed company approx about 2%.

Can u tell me the procedure how to apply to sebi and stock exchanges.

Best Regards,

Abhishek Kadam

sakshi (CS) (261 Points)
Replied 22 February 2013

Dear Abhishek

I request you to kindly read Reg 29 and Reg 30 of SAST, 2011, which is self explanatory and also clarify what is the percentage that the public company is proposing to acquire in listed public company?

In case the, the acquisition of shares or voting rights is exceeding 25%, then in that case you to refer regulation 3 raed with reg 7 , 8 and other related provisions of SAST, 2011.

Regards

Priya Sharma (Company Secretary & Student.MBA) (998 Points)
Replied 22 February 2013

Dear Abhishek

The Unlisetd public company shall make disclosure under regulation 29 shall be within two working days of the acquisition of shares or voting rights in the target company to,—

(a) every stock exchange where the shares of the target company are listed; and

(b) the target company at its registered office.

You may find the forms for disclosure at following site

https://www.sebi.gov.in/sebiweb/home/document_detail.jsp?link=https://www.sebi.gov.in/cms/sebi_data/docfiles/22616_t.html

Thanks & Regards

Priya

Priya Sharma (Company Secretary & Student.MBA) (998 Points)
Replied 22 February 2013

further for the insider trading resulations, read regulation 13 of SEBI(Prohibition of Insider Trading) Regulations along with recent amendment dated 16.08.2011.

I have attcahed the copy of amendment for your reference.

Attached File : 130069 1138761 prohibition of insider trading regulations.pdf downloaded: 100 times

abhishek kadam (Self employed) (151 Points)
Replied 22 February 2013

Dear Priya & Deepika Mam,

The unlisted group Company of our is already holding 5% in our listed Company. And now further more they want to acquire 2% again. (i.e 5% earlier +2% now). As now when i read those regulation they mentioned 5% or more but the Company is acquiring only 2% that means we do not require to intimate Stock Exchanges...! :)

Please correct me, if im wrong...! :)

Best Regards,

Abhishek

ACS Deepika Chowdhary (Company Secretary) (280 Points)
Replied 22 February 2013

Dear Abhishek

As per my understanding two disclosures are required to be made under SAST, 2011 under regulation 29 also under insider trading regulations under Reg. 13 to Listed Company and Stock Exchange within 2 days of acquisition.

Hope it helps you.