Authored by Aishwarya Lakshmi VM
Regulation 11 of SEBI (SAST) Regulations, 2011 [hereinafter, SAST Regulations], empowers SEBI to grant specific exemptions from the requirement of making an open offer, if the same gets triggered under Regulations 3, 4 and 5 of SAST Regulations. Here we present an analysis of the exemptions that were granted by SEBI during the calendar year 2020.
Tracing the Trajectory of Exemption Orders in 2020:
| Split up of Exemption Orders granted by SEBI in the Calendar Year 2020 | |
| Exemption Orders to Family Trusts or Foundations | 25 |
| Exemption Orders to other entities | 2 |
| Total number of Exemption Order | 27 |
The two exemptions that were granted to other entities were to:
1. The Government of Jammu and Kashmir for acquiring the stake in Jammu and Kashmir Bank Limited, and
2. To Greenway Advisors Private Limited for acquiring the stake in Sturdy Industries Limited.
Both these exemption orders were based on the recommendations of the Takeover Panel.
Exemption in Jammu and Kashmir Bank Ltd.
In the Jammu and Kashmir Bank Limited matter, the Government of Jammu & Kashmir proposed to infuse Rs.500 Crores as capital towards the recapitalisation of the Target Company and to maintain the Capital Adequacy Ratio as per RBI Guidelines. Towards this transaction, shares were proposed to be issued on a preferential basis. Post preferential allotment, the J&K Government
