SAT asks SEBI to probe violation of public shareholding norms
Mumbai: Securities Appellate Tribunal (SAT) on Wednesday reserved its judgement in Gillette India case and asked market regulator SEBI to investigate cases of alleged violation of minimum public shareholding norms by listed companies.
"The market regulator should not just take action against the companies but find out solutions to solve the problem," SAT said.
SAT asked both the parties to file final documents supporting their cases in one week, after which it will pronounce the order.
Gillette India had challenged SEBI's order before SAT after the market regulator rejected its proposal to bring down the promoter holding to 75 percent.
After hearing the arguments of counsels of Gillette India and SEBI, SAT member Jog Singh decided to reserve the ruling.
Gillette India is owned by The Procter and Gamble Co. (P&G), the world's largest consumer goods company.
According to filings to the stock exchange, the promoters currently hold 88.76 percent of Gillette India.
Senior advocate JJ Bhatt appearing for SEBI told the tribunal that the regulator has apprehensions in accepting Gillette's proposal as under the sought arrangement public will not have access to 25 percent holding.
Gillette's counsel Somasekhar Sundaresan told the tribunal that SEBI is discriminating as the regulator seems to be allowing few other companies, who have reclassified promoters as non-promoters, to achieve public holding.