Scheme of Reconstruction pursuant to order of competent authority does not trigger, an open offer under SEBI (SAST) Regulations. Discuss the regulation citing the case law.

Regulation 10(1)(d)(ii) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 states that acquisition pursuant to a scheme of arrangement involving the target company as a transferor company or as a transferee company or reconstruction of the company including amalgamation, merger or demerger, pursuant to an order of a court of a competent authority under any law or regulation, Indian or foreign does not trigger open offer as required under Regulation 3 or Regulation 4 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, even if the acquisition crosses the specified threshold limit for open offer. In the case law of Spice Jet being taken over by Ajay Singh, since the Ministry of civil aviation, a competent authority approved the scheme of reconstruction, the acquirer Ajay Singh did not go through the open offer process as mandated under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Regulation 10(6) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 provides that in respect of any acquisition made pursuant to exemption provided in SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the acquirer should file a report with the stock exchanges where the shares are listed, in the prescribed form and not later than 4 working days from the acquisition and the stock exchange shall forthwith disseminate such information to the public.