SEBI decision on Gujarat Ambuja-ACC issue soon

NEW DELHI, MARCH 30: The Securities and Exchange Board of India (SEBI) chairman D R Mehta today said the regulator would soon put an end to the controversy over the appointment of Gujarat Ambuja Cement nominees on the board of Associated Cement Company (ACC).

"We have to see whether the appointment amounted to a change of management," he said. As per the SEBI takeover code, any negotiated sale of 15 per cent or above would trigger the code, making it mandatory for the buyer to give the same offer to public shareholders. Any acquisition below 15 per cent is considered to be an investment rather than an attempt to take-over the firm.

However, since Gujarat Ambuja Cement appointed their nominees on ACC, after acquiring a nominal stake, there were demands from various investor organisations that it was aimed at taking over ACC. Gujarat Ambuja managing director was appointed deputy chairman of ACC and A L Kapur was appointed the Gujarat Ambuja director on ACC board.