SAT admits Gillette plea against Sebi; posts matter to June 12

MUMBAI: Gillette India today got an interim relief from complying with the minimum 25 per cent public shareholding norms, as the Securities Appellate Tribunal ( SAT) granted a stay and asked market regulator Sebi to reply to a petition by the company in this regard in two weeks.

Admitting Gillette's appeal against Sebi's rejection of a proposal for change in shareholding structure, SAT posted the matter for further hearing for June 12 and asked Sebi to present its case by that time.

The proposed changes in shareholding structure was aimed at bringing down promoter holding to 75 per cent or below to meet Sebi's minimum public shareholding guidelines.

However, Sebi has rejected the proposal as it involved re-classification of a top company executive as non-promoter entity.

This is the third time Gillette has approached SAT against Sebi in this matter.

Last year, the Securities and Exchange Board of India (Sebi) had rejected Gillette's proposed transactions to comply with the minimum public shareholding norms as laid down in the Securities Contracts (Regulation) Rules, without citing any specific reason.

Following this, Gillette India approached SAT. In February, SAT had asked Sebi to provide reasons for rejecting Gillette's proposal for meeting the minimum public shareholding requirements.

SAT observed that if the request contained in October 2012 submitted by Gillette did not find favour with Sebi, then "the reasons therefore should have been conveyed to the appellant."

In an August 2012 circular, Sebi had said that listed firms "desirous of achieving the minimum public shareholding requirement through other means" could approach the regulator.

Shares of Gillette India closed 1.42 per cent higher at Rs 2146.85 apiece on the BSE.