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The Original CHAUKIDAAR ,“TAKEOVER WATCHMAN” since 2007. CA. Arun Goenka* hands-on experience in the share market* deep knowledge of laws and account*one of the early players, pioneered an investment strategy in TAKEOVERS*The WIRC - of The Institute of Chartered Accountants of India, has honoured him with the ‘Recognition of CAs in Social Service’. * often invited by National business news; electronic and print media, for his views on SEBI related matters. * history of red-flagging 100+ cases to SEBI* contributes by giving inputs in drafting amendments to the regulation* Some of the suggestions reflected in subsequent regulatory changes: (a). In takeover of Cairn 3,750 Crores non-compete fees waived off and ultimately Removal of Non-compete fee in 2011 (b) November 2009 amending Regulation 11 (1). (c)Listing agreement baring promoters from voting on related party. (d) Disclosure of past performance by merchant bankers in case of IPO (e) SAST 2011 regulation 10(1)(h), (f) Counter Offer in case of Delisting (g) Interest payment to all in case of delays in Open Offers(05.06.20).

Friday, July 12, 2019

BUYBACK WITHDRAWAL BY KPR MILL


SMALL INVESTORS’ WELFARE ASSOCIATION
Regn No. F-72744 (M)
703, Meadows, Sahar Plaza Complex, Andheri Kurla Road, J.B. Nagar, Andheri ( E) , Mumbai 400 059
Email : SirenBajao@gmail.com Tel : +91-22-4215 1349
The above company has informed BSE that they approached you with their desire to withdraw the already announced Buy-Back offer of shares. The reasons given are:
1.    “Increase in the amount of Buyback obligation due to the tax proposal in the Finance Bill 2019”
2.    Not permitted to increase the buyback amount beyond the amount approved by shareholders.
3.    In case the offer is implemented they have to borrow which is not permitted.
We would like to point out that as per  Buyback of Securities Regulations clause 24 (I) (d) it cannot be withdrawn.
“the company shall not withdraw the offer to buy-back after the 
Tax draft letter of offer is filed with the Board or public announcement 
of the offer to buy-back is made;”

The only problem the management is having is the requirement of additional funds to pay the Income Tax. We would like point out as follows:
·       No action to defeat a  Tax provision of the country can be encouraged.
·       As per the extant provision of law such withdrawal permission cannot be allowed.
·       No tax payment can be refused for want of sanction by the Board or the shareholders.
In the circumstances, we urge you to please reject such request for withdrawal of Buyback offer already announced.

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