DAY AND DATE

DAY AND DATE UNDER SEBI REGULATIONS

It is interesting to note  that while Bakri Id is a holiday in 28 states/cities, Janmashtami is a holiday only in 17 states and that too over 2 different dates. Ganesh Chaturthi is a huge celebration in Maharastra but it is a holiday only in 7 cities.

SAST 2011 regulation 2(1)(zf) defines a working day as:

 “working day” means any working day of the Board.

India[1]  is a huge country with a diverse culture. ‘Unity in diversity’ is the identity of the country. A holiday in one state may not be holiday in another. A list of holidays as per RBI,[1] for the month of August 2020 has been summarized below:

Holiday Description in the Month of August 2020 as per Reserve bank Of India Website : https://www.rbi.org.in/Scripts/HolidayMatrixDisplay.aspx as visited on 19 August 2020 at 06.00 Hrs.	Date	Number of States/cities where it is a holiday
Bakri ID (Id-Ul-Zuha)/COVID-19 containment measure	1	28
Raksha Bandhan	3	5
Sri Krishna Janmastami	11	4
Janmashtami	12	13
Patriot’s Day	13	1
Independence Day/COVID-19 containment measure	15	31
Tithi of Srimanta Sankardeva	20	1
Teej (Haritalika)	21	1
Ganesh Chaturthi/Samvatsari (Chaturthi Paksha)/Vinayakar Chathurthi	22	7
Karma Puja/Ashoora/COVID-19 containment measure	29	4
Indrajatra/Thiruvonam	31	3

 With such diversity it is appropriate to define a “Working Day” to ensure uniformity across the nation. As per the regulation, a working day has been defined as the days on which SEBI is working irrespective of whether such day is a working day in the city where the company/entity is situated. The same is also applicable for international players. An overseas acquirer cannot plead holidays in his country while counting the number of days.   

Owing to India’s quasi-federal structure, (each state has its own list of holidays which differs from state to state and from that of the Central Government’s) determination of “working days” becomes highly controversial at times. Additionally, there are certain days on which the stock exchanges are open but the banks are closed as per the holidays provided under the Negotiable Instruments Act, 1881.

This definition is quite short and simple and effectively lays to rest any kind of controversy w.r.t. a “working day.”

DATE

In the case of Punrasar Holding (P) Ltd. V SEBI (SAT Appeal no. 205 of 2009) the case was appointment of acquirer as director of the same day on which they acquired the shares. The SPA was signed and the acquirers were appointed directors on the same day April 19, 2006 in violation of the SAST Regulation 22(7). The petitioner contended that the acquirers were appointed directors on the same date but before the signing of the share Purchase agreement, hence no violation took place. SAT ruled that the date will commence from the midnight and the acquirers cannot be appointed as directors on the same day, regardless of the fact the appointment may have taken place prior to the signing of the SPA.

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[1] https://www.rbi.org.in/Scripts/HolidayMatrixDisplay.aspx as visited on 19 August 2020 at 06.00 Hrs.