SAT quashes Sebi penalty on Apollo Tyres in 2003 share buyback case
₹65 lakh on Apollo Tyres for violating norms pertaining to buyback of shares back in 2003 and directed the market regulator to refund the deposited penalty amount within four weeks. The appeal was filed against the Sebi's order passed in November, 2018 imposing a penalty of ₹65 lakh on Apollo Tyres for violation of buyback norms.
It was alleged that 36.90 lakh shares of Apollo Tyres were bought back by the company and its promoters in contravention of the relevant section of the Companies Act and Sebi regulations. Apollo Tyres did not follow any of the methods for repurchase of shares as specified under the buyback regulation, the market regulator had said.
Under the Regulation 4(1) of buyback, a company can buy back shares through tender offer, open market through book building process via stock exchange and from odd-lot holders. "Exciting news! Mint is now on WhatsApp Channels
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