The Securities Appellate Tribunal (SAT) today directed the market regulator, Securities and Exchange Board of India (Sebi), to give a reasoning for turning down Gillette India's proposal on meeting the minimum public shareholding requirement.
The razor and skin care multinational major's Indian arm moved SAT after its 'sell down' proposal didn't find favour with Sebi.
Details of its proposal are yet to be made public. One aspect of the plan, explained to the tribunal today, was that S K Poddar, chairman, would cease to be a promoter. Following this, he'd be free to sell his eight per cent shareholding in the company freely.
Currently, the promoter holding is 88.76 per cent and it needs to be brought down to 75 per cent before June.
Gillette had approached Sebi by a letter dated October 10, 2012, on what it had proposed. Sebi's reply, dated November 7, said the transactions proposed were not an acceptable means of achieving the minimum public shareholding requirement.