Thursday, March 21, 2013

Rights Offering: Kerala High Court Judgment Stayed by Supreme Court


Last month, we had discussed a decision of the Kerala High Court in Securities and Exchange Board of India v. Kunnamkulam Paper Mills Ltd, where it was held that in certain circumstances a rights offering by an unlisted company may amount to a public offering thereby conferring jurisdiction on SEBI.

The company preferred an appeal to the Supreme Court, which has issued notice, and ordered that in the meantime the judgment of the High Court shall remain stayed. This seems set to operate as a sequel to the Sahara case, although not as high profile.

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