Securities And Exchange Board Of India Directs Hotel Leela To Make Further Disclosures To Shareholders On Asset Sale
[ By Bobby Anthony ]The Securities and Exchange Board of India (SEBI) has directed Hotel Leela Ventures Ltd to make additional disclosures to shareholders about the sale of its assets.The capital market regulator is also expected to initiate adjudication proceedings against JM Financial Asset Reconstruction Company (JMF ARC) after it allegedly failed to comply with provisions of...
The Securities and Exchange Board of India (SEBI) has directed Hotel Leela Ventures Ltd to make additional disclosures to shareholders about the sale of its assets.
The capital market regulator is also expected to initiate adjudication proceedings against JM Financial Asset Reconstruction Company (JMF ARC) after it allegedly failed to comply with provisions of takeover norms.
The SEBI order was in response to complaints received from ITC and LIC, which are minority shareholders of Hotel Leela, alleging that there were violations in the company’s postal ballot notice, dated March 18, wherein it had sought approvals regarding sale of its assets to Brookfield.
The SEBI order stated that Hotel Leela should provide various additional disclosures in the postal ballot notice, including all relevant details of each of the sale transactions.
In addition to this, the SEBI order stated that details of valuation of both asset sale transactions and additional IP transaction, including the methods adopted by the company, should also be disclosed.
The SEBI order stated that valuation reports should be kept for inspection by shareholders of Hotel Leela during the course of the postal ballot.
The order had also stated that SEBI may initiate adjudication proceedings against JMF ARC for its failure to ensure compliance with applicable provisions of takeover regulations.