InvestorQ : Why has SAT pulled up SEBI in the PNB Housing preferential offer case?
Chandralekha Desai made post

Why has SAT pulled up SEBI in the PNB Housing preferential offer case?

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NISHA Nayak answered.
5 months ago
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On the issue of PNB Housing’s preferential placement to Carlyle, the Securities Appellate tribunal or SAT has pulled up SEBI for trying to pre-empt the outcome of the PNB Housing EGM. The SAT has expressed the considered view that SEBI should have ideally waited for the completion of the EGM to pass its order asking for the deal to be put on hold till an independent valuation was sought.

SEBI, on its part, has categorically justified its order saying that the proposed allotment by PNB Housing to Carlyle was ultra vires the Articles of Association and hence would have impacted minority shareholders. The first objections to the PNB Housing preferential allotment to Carlyle came from proxy firms on the grounds of propriety, corporate governance as well as the absence of any control premium.

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