The company submitted to SEBI that as there is no change in the total promoter shareholding, there would be no change in control in Elder Pharma
The Securities and Exchange Board of India recently rejected a proposed recast of shareholding of Elder Pharma, according to a media report. Promoters of Elder Pharma had proposed to transfer their shareholding in two entities, which hold shares in the company as a gift to themselves, as well as to Apricot Capital, another promoter entity, the report added.
The promoter group includes Alok Saxena and Anuj Saxena who are brothers. Both of them hold shares equally in Apricot Capital. But, Apricot Capital does not hold any shares in Elder Pharma. The company submitted to SEBI that as there is no change in the total promoter shareholding, there would be no change in control in Elder Pharma.
"The condition of holding shares for a period of three years prior to the proposed acquisition would be deemed to be fulfilled in case the transferor or transferee collectively hold shares...In the instant case, Alok Saxena and Anuj Saxena, being one of the transferees are holding shares for the last three years, it would be sufficient to qualify for exemption under regulation 10 (1)(a)(ii) of takeover regulations even if the other transferee is not holding shares for such period," the company submitted to SEBI. But, SEBI rejected the proposal.
The regulator said one of the conditions for claiming exemption with regard to inter-se transfer of shares is that the transfer is among persons named as promoters in the shareholding pattern filed by Elder Pharma for not less three years before the proposed acquisition.
The Securities and Exchange Board of India recently rejected a proposed recast of shareholding of Elder Pharma, according to a media report. Promoters of Elder Pharma had proposed to transfer their shareholding in two entities, which hold shares in the company as a gift to themselves, as well as to Apricot Capital, another promoter entity, the report added.
The promoter group includes Alok Saxena and Anuj Saxena who are brothers. Both of them hold shares equally in Apricot Capital. But, Apricot Capital does not hold any shares in Elder Pharma. The company submitted to SEBI that as there is no change in the total promoter shareholding, there would be no change in control in Elder Pharma.
"The condition of holding shares for a period of three years prior to the proposed acquisition would be deemed to be fulfilled in case the transferor or transferee collectively hold shares...In the instant case, Alok Saxena and Anuj Saxena, being one of the transferees are holding shares for the last three years, it would be sufficient to qualify for exemption under regulation 10 (1)(a)(ii) of takeover regulations even if the other transferee is not holding shares for such period," the company submitted to SEBI. But, SEBI rejected the proposal.
The regulator said one of the conditions for claiming exemption with regard to inter-se transfer of shares is that the transfer is among persons named as promoters in the shareholding pattern filed by Elder Pharma for not less three years before the proposed acquisition.
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