Article by Vijay Pal Dalmia, Advocate, Supreme
Court of India and Delhi High Court, Partner & Head of
Intellectual Property Laws Division, Vaish Associates Advocates,
India
I. SEBI rules on acquisition of "control"
The Securities and Exchange Board of India
("SEBI") in the matter of Kamat Hotels
(India) Limited ("KHIL") passed an order
on March 31, 2017 on, inter alia, the issue of acquisition of
control.
Background
Foreign Currency Convertible Bonds issued by KHIL were
subscribed by Clearwater Capital Partners (Cyprus) Ltd. and
Clearwater Capital Partners Singapore Fund III Private Limited
(collectively, the "Investors") with an
option to convert the same into equity shares. The conversion price
for conversion of bonds was later revised by the Board of Directors
to INR 135/- per equity share. An inter-se agreement came to be
executed amongst KHIL, its promoters and the Investors on August
13, 2010.
