<p>Markets regulator Sebi has directed five individuals to make an open offer for acquiring shares of Sungold Capital Ltd as they failed to make such offers after their shareholdings crossed a certain threshold back in 2007.</p>.<p>Under Sebi norms, entities are required to make an open offer to the shareholders of a company in case their stakes go beyond a certain threshold.</p>.<p>"In view of the exceptional circumstances emerging due to the outbreak of Covid-19 and consequential lockdown imposed, this order shall come into force on July 31, or at the end of the lockdown period, if the lockdown is further extended beyond July 31," the regulator said in an order dated July 7.</p>.<p>The individuals have been asked to make the open offer within a period of 45 days from the date when the order comes into force.</p>.<p>The five persons are Rajiv R Kotia and his relatives -- Shilpa Amit Kotia, Shweta Dhaval Kotia, Dhaval Ramesh Kotia and Ravi Rajiv Kotia.</p>.<p>During an investigation, Sebi found that Rajiv R Kotia's shareholding in the company rose to 15.23 percent from 11.96 percent in April 2007. However, Kotia did not make the requisite disclosures.</p>.<p>It was also found that Shilpa Amit Kotia, Shweta Dhaval Kotia, Dhaval Ramesh Kotia and Ravi Rajiv Kotia collectively acquired 22.39 percent shares in September 2007 in Sungold Capital but an open offer was not made.</p>.<p>According to the regulator, the entities, who were 'Persons Acting in Concert,' (PAC) failed to make a public announcement for open offer on several occasions with respect to their acquisition of shares in Sungold Capital during 2007-08.</p>.<p>By doing so, they have violated the provisions of takeover regulations, it noted.</p>.<p>Rajiv R Koita as well as other individuals were jointly and severally liable to make an open offer but failed to do so, the regulator said.</p>.<p>Proceedings against them were initiated through a show-cause notice in September last year.</p>.<p>However, Sebi said that no pragmatic outcome would be achieved by directing Rajiv R Kotia to give two separate open offers.</p>.<p>Hence, as a measure of feasibility and practicality, a single open offer by all the acquirers along with the persons acting in concert would suffice in the facts and circumstances of the case, it said.</p>.<p>The watchdog has also directed all the five individuals that along with "the offer price, pay interest at the rate of 10 percent per annum for the delay in the making of open offer".</p>.<p>This would be for the period starting from the date when they incurred the liability to make the public announcement and till the date of payment of consideration to the shareholders who were holding shares in the company on the date of violation and whose shares are accepted in the open offer, as per the order.</p>
<p>Markets regulator Sebi has directed five individuals to make an open offer for acquiring shares of Sungold Capital Ltd as they failed to make such offers after their shareholdings crossed a certain threshold back in 2007.</p>.<p>Under Sebi norms, entities are required to make an open offer to the shareholders of a company in case their stakes go beyond a certain threshold.</p>.<p>"In view of the exceptional circumstances emerging due to the outbreak of Covid-19 and consequential lockdown imposed, this order shall come into force on July 31, or at the end of the lockdown period, if the lockdown is further extended beyond July 31," the regulator said in an order dated July 7.</p>.<p>The individuals have been asked to make the open offer within a period of 45 days from the date when the order comes into force.</p>.<p>The five persons are Rajiv R Kotia and his relatives -- Shilpa Amit Kotia, Shweta Dhaval Kotia, Dhaval Ramesh Kotia and Ravi Rajiv Kotia.</p>.<p>During an investigation, Sebi found that Rajiv R Kotia's shareholding in the company rose to 15.23 percent from 11.96 percent in April 2007. However, Kotia did not make the requisite disclosures.</p>.<p>It was also found that Shilpa Amit Kotia, Shweta Dhaval Kotia, Dhaval Ramesh Kotia and Ravi Rajiv Kotia collectively acquired 22.39 percent shares in September 2007 in Sungold Capital but an open offer was not made.</p>.<p>According to the regulator, the entities, who were 'Persons Acting in Concert,' (PAC) failed to make a public announcement for open offer on several occasions with respect to their acquisition of shares in Sungold Capital during 2007-08.</p>.<p>By doing so, they have violated the provisions of takeover regulations, it noted.</p>.<p>Rajiv R Koita as well as other individuals were jointly and severally liable to make an open offer but failed to do so, the regulator said.</p>.<p>Proceedings against them were initiated through a show-cause notice in September last year.</p>.<p>However, Sebi said that no pragmatic outcome would be achieved by directing Rajiv R Kotia to give two separate open offers.</p>.<p>Hence, as a measure of feasibility and practicality, a single open offer by all the acquirers along with the persons acting in concert would suffice in the facts and circumstances of the case, it said.</p>.<p>The watchdog has also directed all the five individuals that along with "the offer price, pay interest at the rate of 10 percent per annum for the delay in the making of open offer".</p>.<p>This would be for the period starting from the date when they incurred the liability to make the public announcement and till the date of payment of consideration to the shareholders who were holding shares in the company on the date of violation and whose shares are accepted in the open offer, as per the order.</p>