The Securities and Exchange Board of India (Sebi) has held that a promoter’s kin cannot be recategorised as public shareholders, even if they live independent lives or are uninvolved in the affairs of the company.
The view was issued by the market regulator in the form of an informal guidance sought by shoe manufacturer Mirza International. In a letter to Sebi, the owner of Red Tape, a brand of shoes, sought guidance on whether married daughters of the managing director (MD) and promoter, holding more than 10 per cent of the voting rights in the listed company but living ...
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First Published: Thu, June 11 2020. 01:27 IST
