2018 (11) TMI 1586 - HC - SEBI

Determination of offer price of shares - price per share as computed on 18.07.2018/8.08.2018, which according to the petitioner are dates on which the respondent no.2 Life Insurance Corporation of India Bar and Bench (LIC) had agreed to acquire further shares in IDBI Bank Ltd. - petitioner s contention is that LIC and IDBI Bank Ltd. have violated the provisions of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 thereby benefiting LIC - HELD THAT - Admittedly, the petitioner has an alternate remedy of filing a complaint before the Securities and Exchange Board of India (SEBI). Learned counsel for SEBI states that the complaint, if any, made by the petitioner would be examined and the necessary decision would be taken. In view of this statement, no further orders are required to be passed in this petition except to direct that SEBI treat the present petition as a complaint and take an appropriate decision within a period of two weeks from today. It is so directed.

Summary

Issues:
1. Alleged violation of SEBI regulations by LIC and IDBI Bank Ltd.
2. Petitioner seeking direction for LIC to offer a specific share price.
3. Alternate remedy of filing a complaint before SEBI.

Analysis:
1. The petitioner filed a petition seeking a direction for respondent no.2, Life Insurance Corporation of India (LIC), to offer a price of `76.77/- per share, alleging that LIC and IDBI Bank Ltd. violated SEBI regulations. The petitioner claimed that LIC had agreed to acquire further shares in IDBI Bank Ltd. on specific dates, benefiting LIC. The court noted the petitioner's alternate remedy of filing a complaint before SEBI, which the petitioner could pursue. The court allowed the petition, subject to all just exceptions.

2. The court directed SEBI to treat the petitioner's present petition as a complaint and make an appropriate decision within two weeks. The learned counsel for SEBI assured that any complaint made by the petitioner would be examined, and necessary action would be taken. The court disposed of the petition based on SEBI's commitment to review the matter and make a decision within the specified timeline.

3. The judgment emphasized that if the petitioner remains aggrieved by SEBI's decision, they are entitled to avail of further legal remedies available under the law. This provision ensures that the petitioner can pursue additional courses of action if dissatisfied with SEBI's decision, safeguarding their rights to seek appropriate redressal in case of unfavorable outcomes.