Shalimar Paints: 34 entities settle takeover norms violation case with Sebi

As many as 34 entities have settled proceedings related to alleged violations of 'takeover' norms in the matter of Shalimar Paints Ltd with markets regulator Sebi on payment of Rs 3.04 lakh. This came after an application was filed by Urvi Jindal with Sebi proposing to settle the enforcement proceedings that may be initiated against her for the alleged violations through a settlement order and accordingly, the settlement amount was remitted.

"...the specified proceedings, in respect of which the summary settlement notices were issued, are hereby settled in respect of the applicants (Urvi Jindal along with the Persons Acting in Concert), " Sebi said in a settlement order passed on Thursday.

While examining Draft Letter of Offer filed for the acquisition of equity shares of Shalimar Paints by Hella Infra Market Private Limited, Sebi had observed that 1,65,545 equity shares of Shalimar Paints (Target Company), were acquired by Urvi Jindal from Ratan Jindal, by way of inter-se transfer amongst immediate relatives, on March 30, 2022.

The transaction resulted in a change of more than 2 per cent of the total shareholding of Urvi Jindal, along with the Persons Acting in Concert, in the Target company. The transaction was disclosed only on April 17, 2024, resulting in the violation of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations.