In Brief
SEBI appealed against a tribunal decision that had reversed penalties imposed on Burren Energy India Ltd. for violating takeover regulations. Burren and another company (acting in concert) appointed directors to a target company's board on the same day they executed a share purchase agreement, but before making a public announcement required by law. The tribunal had held the offer period began only with the public announcement, making the appointments lawful. The Supreme Court held that the offer period commences from the date of the concluded share purchase agreement, not just the public announcement. It also clarified that persons acting in concert—including corporate entities and their directors—are equally bound by restrictions on Board appointments during the offer period. The Court allowed SEBI's appeal and restored the penalty.
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