The following is the information of Company Kingkong Limited listed on Bombay Stock Exchange (BSE): The paid up equity share capital of the company is ₹10,00,00,000 comprising of 1,00,00,000 equity shares of ₹10 each. Th

Answer 2(b) The Regulation 3(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 provides for exemption from making a public announcement subject to the following conditions: The shareholding of the Acquirer is between 25% of the total shares or voting rights of the company and the "maximum permissible non-public shareholding limit". Pursuant to the acquisition, the shareholding of the Acquirer should not breach the maximum public shareholding limit. For calculating the acquisition limit of 5% of shares or voting rights, as specified under Regulation 3(2) of the Takeover Regulations, only gross acquisition shall be taken into account. Any intermittent fall in shareholding owing to disposal of shares by the acquirer or dilution of shareholding on account of fresh issue of share capital shall be ignored. In case the acquisition has taken place by way of issue of new shares of the target company or where the target company has issued shares during a financial year, the difference between the pre-allotment and post-allotment voting rights shall be taken into account for calculating the acquisition limit under Regulation 3(2) of the Takeover Regulations. Further, the Promoters of the company are currently holding 55% shares in the company, which is within the eligible limit as stated at point no. (i) above. Moreover, the promoters want to increase their shareholding by 5% in each of the financial year 2013-14, 2014-15, 2015-2016 and 2016-17. The precise query of the applicant is whether promoters of the company are allowed to acquire 5% of shares only once, or acquire 5% shares is available for every financial year. The language "any financial year" mentioned in Regulation 3(2) of the Takeover Regulations should be read as "every financial year". Therefore, the promoters of the company are eligible to acquire up to 5% of shares of the company every financial year without attracting the obligation to make a public announcement as provided under Regulation 3(2) of Takeover Regulations, subject to the fulfilment of other conditions mentioned therein.