Prabhat Kumar Mishra (Job) (42 Points)
04 May 2010
When one promoter sold his holding in open market and other purchase form open market i.e. through Stock Exchange.
Is Take over Code (Regulation 3(1)(e) i.e.Inter-se Transfer) is applicable in that case?
Prabhat
CS Milan Mehta
(Partner)
(41 Points)
Replied 05 May 2010
it is not inter-se transfer but sebi compliance has to be done seperately
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 06 May 2010
Yes, it is not inter-se transfer.
Inter-se transfer= Internal transfer among promoter(s) and promoters group.
Example:-
A Listed Company having promoters' and promoters' group holding around 60%. Now one promoter wants to transfer its 7% shares to other promoter(s).
It would be inter-se transfer under section 3(1)(e) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 And fully allowed subject to certain disclosures under Takeover Code and Insider Trading regulations.
Transfer can only be made through Stock Exchange and STT is required to be paid. Otherwise Long Term gain wuuld arise.
Now My Question:-
There is one option of off-line transfer by way of transfer slips, but it is also not workable solution as STT would not apply in this case and the transaction would cover under long term capital gain.
In case he sells shares, it is not necessary that only that promoter will purchase share. Any other persons may also purchase those shares.
so, How the transfer can take place??
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 06 May 2010
Dear Prabhat,
In your case, there is ofcouse no inter-se transfer. But the transaction is subject to certain disclosures under Takeover code and Insider trading regulations. if the holding of the promoters exceeding that limits.
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