SAT directs Sebi to give reasons for rejecting Gillete offer

The Securities Appellate Tribunal (SAT) today asked Sebi to give reasons for rejecting Gillete India's proposal regarding minimum public shareholding norms.

Last year, Securities and Exchange Board of India (Sebi) had conveyed to Gillete that the transactions proposed by the company were not acceptable means for achieving minimum public shareholding requirements.

Following this, Gillete India approached SAT alleging that the market regulator had rejected its proposal without assigning any reasons.

In its order today, SAT has directed Sebi "to consider the present appeal as a representation made before the Board (Sebi) and, after considering the representation, pass a speaking order on the request made by the appellant (Gillete) in accordance with law".

A speaking order generally refers to an order which sets out the reasons for arriving at the decision.

SAT observed that if the request contained in the letter dated October 10, 2012 submitted by Gillete did not find favour with Sebi then "the reasons therefore should have been conveyed to the appellant".

In a August 2012 circular, Sebi had said that listed firms "desirous of achieving the minimum public shareholding requirement through other means" could approach the regulator.

Sebi had said such requests would be considered on merit.

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