K. Nirupama vs Sebi on 18 April, 2013
In this connection, it may be persistently
noted that this Tribunal in Appeal no. 66 of 2003 in the case of Milan Mahendra
Securities Pvt. Ltd. vs. SEBI, by its order dated November 15, 2006, under somewhat
similar circumstances, has observed that "the Regulations were framed on the basis of
the input provided by a committee headed by Justice P. N. Bhagwati which had
recommended that substantial acquisition of shares and takeovers should operate
principally to ensure fair and equal treatment to all shareholders in relation to
substantial acquisition of shares and takeovers. The object of the Regulations is to
give equal treatment and opportunity to all shareholders and protect their interests.
To translate these principles into reality measures have to be taken by the Board to
bring about transparency in the transactions and it is for this purpose that
dissemination of full information is required. It is with this end in view that the
4
Regulations require the making of disclosures on pre-acquisition and post-acquisition
stages and the requirement in Regulation 7 at post acquisition stage is one among
them. As observed, the purpose of these disclosures is to bring about transparency in
the transactions and assist the Regulator to effectively monitor the transactions in the
market. We cannot therefore subscribe to the view that the violation was technical in
nature."