LEGAL UPDATES: SEBI Clarification in the matter of Ambattur Enterprises Limited
Facts: Ambattur Enterprises Limited a company listed at Madras Stock Exchange filed an appeal with SAT against the SEBI order of rejecting the Exemption Application filed by the Company claiming exemption from provisions of Regulations 8(1)(b), 27(3)(d) of SEBI (Delisting of Equity Shares) Regulations, 2009. Hon’ble SAT set aside the impugned order passed by the Board and remitted the case to the Board for passing a fresh order in accordance with law giving reasons in support of its conclusions. Company filed Exemption Application on the following grounds: NIL trading activity since 1995 at MSE (the only Exchange where the Company is listed). Inability of the promoters to off load their shareholding to comply with the requirement of Clause 40A of the listing agreement. The public shareholders held 17.66 % of the capital being only 32 in number.