What happens to the forensic investigation piece ? Supposing the auditor comes back saying money was siphoned off- do shareholders have any recourse ?
Extract from SEBI regulation on delisting
"No promoter shall directly or indirectly employ the funds of the company to finance an exit opportunity provided under Chapter IV or an acquisition of shares made pursuant to sub-regulation (3) of regulation 23
No promoter or other person ‘ acquirer or promoter or promoter group or their related entities’ shall –
a. employ any device, scheme or artifice to defraud any shareholder or other person; or
b. engage in any transaction or practice that operates as a fraud or deceit upon any shareholder or other person; or
c. engage in any act or practice that is fraudulent, deceptive or manipulative – in connection with any delisting sought or permitted or exit opportunity given or other acquisition of shares made under these regulations."
BTW, not sure why institutional investors accepted exit price of Rs 101. At this price the market cap is Rs 987 crores only.
Company had mentioned the following in Feb 2021.
