Facts
In the Matter at hand, Schneider Electric President Systems Limited v. SEBI Schneider Electric President System Limited filed an appeal against the SEBI order that instructed the company to either list its equity shares on a stock exchange with nationwide terminals or delist it by following the steps outlined in the SEBI (Delisting of Equity Shares) Regulations, 2009, within six months. On February 14, 2017, the public limited company Schneider Electric President System Limited submitted an exit offer for Rs. 200.40 per equity share. The Securities and Exchange Board of India dismissed the case, noting that De-recognized/Non-operational/exited stock exchanges controlled the exit offer of Exclusively Listed Companies. If there are valuation concerns, the complainants may contact the corporation. 31 public shareholders who collectively own 9% of the company’s shares filed an appeal. The ruling was overturned by the Tribunal, and SAT asked SEBI to issue a reasoned order that addressed SEBI’s stance on the ELCs’ need for ongoing listing and oversight of their operations. The Company appealed a SEBI ruling to the Bombay High Court, claiming that the appeal’s remedy might not be effective. The Court told the Company that SAT is composed of three members, two of whom have experience as judges, in accordance with Section 15M of the SEBI Act. The Court promised that SAT’s rulings would be free from the effect of its prior order and thus dismissed the petition.
Issue
- i) Has the firm ever been qualified to list on a national stock market, and has it made any attempts to do so?
- ii) If the firm was qualified to list, was it necessary for it to do so before using the 2016 circular’s delisting option?
Analysis of tribunal order
The French business withdrew its plea, thus the SAT two-member Bench of Justice Tarun Agarwala and Justice Meera Swarup Technical Member dismissed the case and ordered the business to abide by the SEBI ruling.
Due to the French company’s withdrawal, the Tribunal rejected the appeal against the SEBI order. Additionally, it concluded that the French firm had disobeyed the order within the allotted six months, and because that time had passed, it ordered the company to follow the instructions of the contested order within six months of the date of this decision.
CASE NAME – Schneider Electric President Systems Limited v. SEBI, Appeal No. 144 of 2021