PQR Ltd. listed its shares in NSE. Its promoters hold 56.5% of paid-up equity share capital as on 31st March, 2022. On 10th October, 2022, some of the promoters who were having convertible warrants in the company, has co

Yes, the promoters might be permitted to avail an exemption under Regulation 10 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Regulation 10(1)(a)(ii) provides an exemption for acquisitions pursuant to an 'inter se' transfer of shares amongst qualifying immediate relatives. Since Prakash is gifting shares to his immediate relative, Vipin, this transfer would qualify as an 'inter se' transfer between immediate relatives. For this exemption to apply, the acquirer (Vipin) must, within twenty-one working days of the date of acquisition, submit a report in the specified form along with supporting documents to SEBI. Therefore, if the conditions of Regulation 10 are met, the promoters would be permitted to avail this exemption from the obligation to make an open offer.