Exemption order in the matter of Elgi Rubber Company Limited
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What is this order about?
SEBI examined an exemption request for Varnam Securities Trust to acquire shares in Elgi Rubber Company Limited without triggering takeover regulations, as the transaction was structured as a family trust transfer within the promoter group.
Who it concerns
Varnam Securities Trust, Sudarsan Varadaraj (as trustee), and related family members (Harsha Varadaraj, Varshini Varadaraj, etc.)
What was found or directed
- Exemption from SAST Regulations 2011 provisions (regulation 3(1) read with 4 and 5) granted
- Transaction structured as gift without consideration
- No change in promoter/promoter group shareholding percentage (65.03% before and after)
- No change in public shareholding (34.97%)
- Trustees and beneficiaries limited to promoter family members
- Trust to comply with SEBI Master Circular conditions (Chapter 8, Feb 16, 2023)
Points worth noting
- Total shares transferred: 21,315,350 (42.59%) directly + 3,495,770 shares in LRG Technologies (indirectly, 7.08% of Target Company)
- Trust structure: Varnam Securities Trust established under Indian Trusts Act, 1882, with trustees as family members
- No alteration in Target Company's equity share capital
| Source body | Securities & Exchange Board of India (SEBI) — enforcement orders |
| Reference number | WTM/KCV/CFD/07/2026-27 |
| Status | closed (section: order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |
Highlights & Points worth asking
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Documents
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Order
2026-07-15
eo_elgi_rubber_co_ltd.pdf
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