Sebi challenges Securities Appellate Tribunal order on Takeover Code

The market watchdog Sebi today moved the Supreme Court challenging the decision of the appellate tribunal SAT that held that financial investors like PEs and VCs do not acquire controlling stake in a company by just picking up more equity.

The Securities Appellate Tribunal (SAT) had in January this year set aside a Sebi direction that held that the veto rights acquired by a financial investor in a target company cannot be construed as a controlling stake.

An apex court bench comprising the new chief justice SH Kapadia and justices KS Radhakrishnan and Swatanter Kumar directed both the parties to file their written submissions.

The Securities and Exchange Board was represented by Attorney General GE Vahanvati.