SEBI exempts two family trusts related to Navkar Corporation from making open offer

The proposal has been made following a private family arrangement to provide for family succession and welfare of Mehta Family.

Published: 21st February 2019 01:02 PM  |   Last Updated: 21st February 2019 01:02 PM   |  A+A-


SEBI building (Photo | Reuters)


NEW DELHI: Market regulator Sebi Wednesday exempted two private family trusts related to the promoter group of Navkar Corporation Limited from the obligation of making an open offer following its proposed acquisition of 31.4 per cent stake in the firm.

Nemichand Mehta Family Trust and Shailaja Mehta Family Trust had sought exemption from the obligation of making open offer post-acquisition of certain number of shares in Navkar Corporation.

Under the proposed acquisition, both trusts would be acquiring a total of 31.4 per cent equity shares of Navkar from the company's promoter Nemichand Mehta and Shailaja Mehta who are also trustees of both Mehta Family trusts.

The proposal has been made following a private family arrangement to provide for family succession and welfare of Mehta Family.

In an order, Sebi has granted exemption to both the trusts from making the open offer, saying the proposed acquisition would take place pursuant to a private family arrangement intended for succession and welfare of the promoter Mehta Family.

Besides, the proposed acquisition will not affect the interest of the public shareholders and there will be no change in control of the company pursuant to the proposed acquisition, noted Sebi.

According to the SAST (Substantial Acquisition of Shares and Takeovers) Regulations, an entity buying 25 per cent stake in a listed firm needs to mandatorily make an open offer to buy an additional 26 per cent shares from the public shareholders The regulator has laid certain conditions while providing exemptions, including that the proposed acquisition should be in accordance with the relevant provisions of the Companies Act and other applicable laws.

"On completion of the proposed acquisition, the acquirers (trusts) shall file a report with Sebi within a period of 21 days from the date of such acquisition, as provided in the Takeover Regulations," said whole time member G Mahalingam.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp