SC: General Reference to a Tender’s Arbitration Clause Does Not Incorporate it into a Contract  ||  Supreme Court: Partnership Veil May be Lifted to Detect Illegal Sub-Letting Arrangements  ||  Supreme Court: Lower Dearness Relief For Pensioners than Employees' DA is Arbitrary under Article 14  ||  Supreme Court: NCLT Should Not Assess Merits of Pre-Existing Dispute in Section 9 Applications  ||  Supreme Court Clarifies that the Right to Vote is Not a Fundamental Right But a Statutory Right  ||  Chhattisgarh High Court: Minor’s Voluntary Elopement With a Lover Does Not Constitute Kidnapping  ||  Bombay HC: Staring at Co-Worker’s Chest is Morally Wrong But Does Not Amount to Voyeurism under IPC  ||  Delhi HC: Loss of Confidence in Employees Entrusted With Funds is Valid Ground For Termination  ||  Allahabad High Court: Gram Nyayalaya Has Jurisdiction to Decide Maintenance and Execution Petitions  ||  J&K&L HC: Non-Publication of Sec 4(1) Notice in Gazette and Local Newspapers Vitiates Acquisition    

A.R. Dahiya v. SEBI - (Supreme Court) (25 Nov 2015)

Supreme Court endeavours to protect shareholders from greedy management

MANU/SC/1350/2015

Capital Market

Transaction buying-back shares purporting to transfer over 15 per cent of total shareholding, particularly when conducted between promoters of a company, is not protected from public disclosure under Regulation 3 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. The Court held that the rate at which such shares were bought back would have to be disclosed in the announcement. It also added that post-dated cheques given towards the transaction due to the purchaser facing a “liquidity crunch” amounted to a “promise to pay and that promise would be fulfilled on the date mentioned on the cheque.” In the instant case, the Appellant had appealed against various SEBI and Securities Appellate Tribunal orders, amongst which was a valuation of shares for ‘minimum offer price’ wherein the Tribunal had held that the highest price paid by an acquirer for any acquisition would be taken into account in determining the minimum offer price.

Tags : SHARE   BUY-BACK   MINIMUM PRICE   ANNOUNCEMENT   CHEQUE  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved