Business & EconomyBusiness NewsCompaniesFinance

PNB Housing Finance moves SAT against SEBI directive

Punjab National Bank (PNB) Housing Finance has filed an appeal at the Securities Appellate Tribunal challenging the Securities and Exchange Board of India (SEBI) directions relating to the valuation procedure of PNB’s Rs 4,000 crore transaction with a consortium led by private equity giant Carlyle.

The consortium includes former HDFC bank Managing Director and Chief Executive Officer Aditya Puri, and private equity funds General Atlantic and Ares SSG.

PNB Housing Finance announced this in a disclosure to stock exchanges.

In a letter to the PNB last week, the SEBI halted the deal temporarily and said the notice for an EGM ( Extraordinary General Meeting ) scheduled for June 22 was not consistent with the firm’s articles of association . SEBI directed the lender to undertake the valuation exercise based on the firm’ articles of association.

The market regulator said that the notice given on May 31 for Extraordinary General Meeting is “ultra-vires of Article of Association (AOA) and shall not be acted upon until the company undertakes the valuation of shares as prescribed under 19(2) of AOA, for purpose of preferential allotment, from an independent registered valuer as per the provisions of applicable laws. The said report shall be considered by the Company’s Board while deciding on the preferential issue of shares and warrants.

Content Protection by DMCA.com

Sindhu Nagaraj

Global Business Line Team
Back to top button