Three-year disclosure must for promoter share transfer: Sebi
The capital markets regulator has said that disclosure as promoters in the shareholding pattern filing is a must for at least three years to get the exemption from open offer, even if the company has been listed for a shorter period of time.
If the shareholding of any entity hits 25 per cent threshold limit in a listed company, it is required to make an open offer for an additional 26 per cent shares from the public shareholders of the company.
However, the open offer is not triggered if the threshold is hit because of transfer of shares between two promoters, who have been listed as promoter entities in the company's shareholding pattern filings for at least three years, besides some other conditions, Sebi has said.
The observations have been made by Sebi in an 'interpretive letter' sought by a company, the Commercial Engineers and Body Builders Company Ltd been listed on the BSE and the NSE since October 18, 2010.
As the company has been listed for less than three years, it had sought an "informal guidance" from Sebi about whether one of its promoters, Ajay Gupta, can transfer shares to another promoter and his father-in-law Kailash Gupta without any open offer requirements.
All the promoters together hold 55.81 per cent stake in the company, out of which Ajay Gupta has
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