SEBI grants exemption for 30% share acquisition by Sekhri Family Trust

The acquisition is described as an internal estate and succession planning exercise within the promoter family.

Who it concerns: Tinna Rubber and Infrastructure Limited (Target Company), Sekhri Family Annuity Trust (Acquirer), Mr. Gaurav Sekhri (Trustee/Applicant), Mr. Bhupinder Kumar Sekhri (Transferor/Promoter).

What SEBI found or ordered

• SEBI granted exemption from Regulation 3 and Regulation 4 of the SAST Regulations, 2011.
• The Acquirer Trust proposes to acquire 54,04,730 shares (30.00%) from Mr. Bhupinder Kumar Sekhri.
• Post-acquisition, the Acquirer Trust will hold 30.06% of the equity share capital.
• The transaction is characterized as a non-commercial internal reorganization within the promoter family.
• SEBI noted that the trust is a 'mirror image' of the promoters' holdings with no change in effective control.
• The Acquirer Trust must provide annual compliance certifications from an independent auditor to Stock Exchanges and SEBI.

Also in the document

• The order confirms that the public shareholding remains unchanged at 32.41% after the transaction.
• The trust was settled under the Indian Trusts Act, 1882, with a registered deed dated April 24, 2024.
• SEBI accepted the argument that the transfer does not prejudice public shareholders or violate fair takeover practices.