In Brief
This appeal challenged SEBI's order requiring a higher price for shares acquired during a promoter transaction. After a demerger, the appellant acquired shares in the target company (Rattan India) at Rs.6.30 per share in 2014. When later announcing a public offer at Rs.3.20 per share, SEBI rejected an exemption claim under Regulation 10 for promoter transfers because the three-year promoter requirement had not been met—time was measured from the target company's listing date in 2012, not from the predecessor's incorporation. The Court held that Regulation 10 applies to the separately listed target company only, not its predecessor, and that the corporate veil cannot be lifted by courts without express statutory authorization. The appeal was dismissed.
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