The Hindu : SEBI files response to Grasim appeal

Online edition of India's National Newspaper
Wednesday, Nov 27, 2002

Business

Business

SEBI files response to Grasim appeal

MUMBAI NOV. 26. The Securities and Exchange Board of India (SEBI) today filed its response with the Securities Appellate Tribunal (SAT) for Grasim Industries's appeal against SEBI's `advice' to put on hold the company's open offer for Larsen & Toubro pending investigation on alleged breach of takeover code.

The SEBI Chairman, G. N. Bajpai, when contacted said "We have filed the response with the tribunal," and added "I will not like to comment (on the content) as the matter is subjudice". SAT is likely to give its verdict on Grasim's appeal tomorrow. Investors' Grievance Forum, which wanted to become a party to the matter, also filed an intervention application with the tribunal, IGF secretary, Vipul Modi, said.

The market regulator has been conducting investigations into alleged violation of takeover code involving Grasim's acquisition of 2.5 crore L&T shares from Reliance Industries at Rs. 306 per share in November 2001.

Citing this probe, SEBI on November 8 advised JM Morgan Stanley, manager to Grasim's open offer, to acquire an additional 20 per cent stake in L&T at Rs. 190 per share, not to go ahead with the offer. On November 18, Grasim filed an appeal with the SAT against the regulator's advice to put the offer on hold. SEBI has also slapped a show cause notice on JM Morgan Stanley for alleged delay in informing the public about SEBI's advice. — PTI

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