Securities and Exchange Board of India (SEBI): S.K. Mohanty, Whole Time Member, exempted the Government of Jammu and Kashmir, from complying with the requirements of Regulation 3(2) of the Takeover Regulations with respect to the Proposed Acquisition of 6.06% equity shares in the Target Company viz., Jammu and Kashmir Bank Limited during the Financial Year 2021-22, through the proposed preferential allotment as mentioned in the Application.
In the instant case, the Jammu and Kashmir Government had sought an exemption from the open offer obligation arising under Regulation 3(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as the “Takeover Regulations”) due to the proposed/impending acquisition by the Proposed Acquirer.
received an application from the bank on behalf of its promoter, the Government of Jammu and Kashmir, seeking exemption from the open offer obligation arising under SAST (Substantial Acquisition of Shares and Takeovers) norms due to the proposed acquisition. The government of Jammu & Kashmir is infusing a capital up to ₹500 crore towards equity infusion or recapitalization of the bank against allotment of equity shares.
Utilised by the Target Company to meet the needs of its growing business, including long term capital requirements for pursuing its growth plans and to maintain its Capital Adequacy Ratio as per the regulatory guidelines/norms laid down by the Reserve Bank of India
The Tribunal after granting the exemption stated that it “is based on the premise that the statements/ averments made or facts and figures mentioned in the Application are true and correct”. And therefore, gave exemption subject to certain restrictions. However, directed to remain compliant with the minimum public shareholding requirement of 25 per cent.[Jammu and Kashmir Bank Ltd, In re, 2021 SCC OnLine SEBI 185, decided on 03-08-2021]
Agatha Shukla, Editorial Assistant has reported this brief.
