Tribunal rules on interest payment timeline in SEBI matter, rejecting appellant's claim. The tribunal ruled that interest was payable from the acquisition agreement date until the draft offer publication date and from SEBI's price finalization ...
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Tribunal rules on interest payment timeline in SEBI matter, rejecting appellant's claim.
The tribunal ruled that interest was payable from the acquisition agreement date until the draft offer publication date and from SEBI's price finalization until the actual payment date. The acquirer was not liable for interest during the period when SEBI was determining the price. The tribunal rejected the appellant's claim for interest during this period, citing legal precedents and the appellant's litigious actions. Ultimately, the tribunal found no error in SEBI's decision to reject the interest application, dismissing the appeal without costs awarded.
Issues: 1. Rejection of application for payment of interest by the Whole Time Member (WTM) of Securities and Exchange Board of India (SEBI). 2. Determination of compensatory interest for the period from April 10, 2018, to the date of actual payment.
Analysis: 1. The appellant filed an appeal against the WTM's order rejecting the application for interest payment. The case involved the acquisition of a company triggering the requirement for a public announcement under the SAST Regulations. SEBI directed the acquirer to raise the share price, leading to various appeals and court interventions. The appellant sought compensatory interest from April 10, 2018, to the date of payment, alleging delays and mala fide intentions by the respondent.
2. The tribunal considered the SEBI Act and SAST Regulations, emphasizing investor protection and fair treatment of minority shareholders. The appellant argued for interest due to delays in payment, while SEBI and the respondent contended that interest had been paid as per regulations. The tribunal noted that interest had been paid for specific periods but disputed the necessity of interest for the period between the publication of the draft offer and SEBI's final price determination.
3. The tribunal ruled that interest was payable from the acquisition agreement date until the draft offer publication date and from SEBI's price finalization until the actual payment date. It held that the acquirer was not liable for interest during the period when SEBI was determining the price. The tribunal rejected the appellant's claim for interest during this period, citing legal precedents and the appellant's own litigious actions regarding the share price valuation.
4. Ultimately, the tribunal found no error in SEBI's decision to reject the interest application. The appeal was dismissed, and no costs were awarded. The judgment was delivered via video conference due to the Covid-19 pandemic, with directions for parties to act on the digitally signed copy of the order provided.
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