(PTI)
Promoter group entities will not be required to make an open offer if there is no change in control of the company due to transfer of shares among them, according to Sebi. The market regulator’s view has come on an application filed by one of realty major DLF’s promoter entity — Rajdhani Investments & Agencies Pvt Ltd — seeking informal guidance with respect to applicability of takeover norms for the merger of 10 promoter group companies into it. While Sebi issued the informal guidance in March this year on DLF’s application filed in November 2016, the same was made public only today as the company had sought confidentiality.
With a view to consolidate the holdings and streamline the promoter group firm structure, it was proposed to merge the 10 entities into Rajdhani Investments through a composite scheme of merger with the approval of High Court. Among others, Rajdhani Investments had submitted that as a result of the proposed merger, there will be no change in the trustees or beneficiaries of the trust and accordingly, there is no change in control or economic beneficial ownership of the transferee.
