NEW DELHI: Any inter-se transfer of shares by a promoter to his wife will be considered as sale even if it is in the form of a gift where no monetary transaction is involved, said Sebi.
According to guidelines, promoters are not eligible for preferential allotment of shares or warrants if there has been any inter-se transfer of shares among promoter group firms in the last six months. Giving its views on an application filed by KJMC Financial Services, the watchdog said that as envisaged in the Sebi ICDR (issue of capital and disclosure requirements) regulations, any transfer of shares in the form of gift will be considered as sale
“Our view is that the inter-se transfer by way of gift will be considered as sale as envisaged... in the Sebi ICDR regulations,” Sebi said, adding that its response is based on the information given in the company’s letter.
Referring to the ICDR regulations, the regulator said that the primary intention of the regulation was not with respect to consideration, but with change in ownership of equity shares.” “Different facts might lead to a different result,” it referred.