IDBI acquisition: Delhi HC directs SEBI to examine complaint by minority shareholder against LIC

The Delhi High Court has directed the Securities and Exchange Board of India (SEBI) to examine a complaint made by a minority shareholder of IDBI Bank Ltd. The minority shareholder has alleged violation of the provisions of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 by the Life Insurance Corporation (LIC) while acquiring shares in the debt-ridden Bank..The minority shareholder, Satish Goggia, had moved the High Court under its writ jurisdiction seeking a direction to LIC to “offer a price of Rs. 76.77/- per share as computed on 18.07.2018/8.08.2018, which according to the petitioner are dates on which the (LIC) had agreed to acquire further shares in IDBI Bank Ltd“..It was the Petitioner’s case that the current valuation had violated the provisions of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 and benefited LIC..However, in view of an alternative remedy available to the Petitioner before SEBI, Justice Vibhu Bakru proceeded to dispose of the Petition. It nonetheless directed the Securities Regulator to treat the present petition as a complaint and take appropriate action within two weeks..” ..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.“, Justice Bakru ordered..The Court further stated that if the Petitioner is aggrieved by the decision of SEBI, he “would be at liberty to avail of such remedies as available in law“..The challenge to the Government’s move to dilute its stake in IDBI below 51% and the subsequent acquisition of that stake by LIC is currently pending before the High Court..The Petitioner was represented by Advocates Saket Sikri, Aman Vachher, Aviskae Singhvi, Dhiraj, Ashutosh Dubey, Abhishek Chouhan, Arun Nagar and Rahul Arya..Central Government and LIC were represented by Additional Solicitor General Maninder Acharya with Central Government Standing Counsels Kirtiman Singh,Ravi Prakash and Samir Malik, and Advocates Ankit Jain, Saroj Bala, Kamal Mehta, Aditya Sharma and Viplav Acharya..Read the order: