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CS Executive · Capital Market and Securities Laws · Acquisition of Shares and Takeovers - Concepts

Meridian Textiles Ltd is listed on a recognised stock exchange. A promoter group intends to acquire control of it in a manner that breaches the takeover regulations framed by SEBI. Which provision of the SEBI Act, 1992 specifically prohibits acquiring control or securities beyond the permitted percentage of equity share capital of a listed company in contravention of the regulations?

Section 12A(f) of the SEBI Act prohibits acquiring control of a listed company, or securities above the permitted percentage of its equity share capital, in contravention of SEBI regulations. Other sections cited deal with intermediary registration, public servants or penalties, not this prohibition.

  1. ASection 12A(f)Correct
  2. BSection 12(1)
  3. CSection 22
  4. DSection 15H(i) only

Explanation

Section 12A(f) bars any person from acquiring control of a company, or securities beyond the permitted percentage of equity share capital, of a company listed or proposed to be listed, in contravention of SEBI regulations. Section 12 deals with registration of intermediaries and Section 22 treats SEBI staff as public servants. Section 15H(i) only provides a penalty for non-disclosure, not the prohibition itself.

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