Request under the SEBI (Informal Guidance) Scheme - BSES Ltd

GENERAL MANAGER
CORPORATE RESTRUCTURING DIVISION

Tel. 22823886

Fax – 22829520

Email–id - mdrao@sebi.gov.in

CFD/DCR/RC/TO/3854/04

February 24, 2004

BSES Ltd.

BSES House

Santa Cruz (East)

Mumbai- 400055

 

Dear Sir,

 Sub.: Request under the SEBI (Informal Guidance) Scheme, 2003

 

Ref : Your letter dated 23rd February, 2004

 

Please refer to your letter cited above seeking our informal guidance on your proposed issue of, inter-alia, warrants.

You had sought a clarification that the acquisition of warrants by way of preferential issue, per se, shall not attract the provisions (including creeping limits) of the Substantial Acquisition of Shares and Takeovers) Regulations, 1997 {"Regulations"} and that only shares which are issued and allotted against such warrants, shall be considered for the purpose of limits under the Regulations at the time of allotment of such shares.

We advise that the Regulations shall not apply to acquisition of warrants, per-se, so long as they are not converted into shares carrying voting rights.

This position is based on the representation made to the Division in your letter. Different facts or conditions might require a different result. This expresses the Division’s position on enforcement action only. It does not express decision of the Board on the questions presented.

You may note that the above views are expressed only with respect to the clarification sought on SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 and do not affect the applicability of any other law.

 

Yours faithfully,

 S. V. MURALI DHAR RAO