Sodhi takes over as SAT chief

Justice Nauvdip Kumar Sodhi has taken over as the Presiding Officer of the Securities Appellate Tribunal (SAT) here on Wednesday. Mr. Justice Sodhi, a former Chief Justice of Karnataka High Court, replaced Justice Kumar Rajaratnam, who had earlier tendered his resignation. After assuming charge as the Presiding Officer of SAT, Mr. Justice Sodhi adjourned the case of Sree Karpagambal Mills, which was to be heard by Justice Rajaratnam on Tuesday until February 14, 2006. In this case SAT asked the Securities and Exchange Board of India (SEBI) to explain how it gave an exemption to Sree Karpagambal Mills from making a public offer as per the Takeover Code provisions, while allowing the transfer of the promoters' holdings. Promoters of Sree Karpagambal Mills include, Karti P. Chidambaram, son of Union Finance Minister P. Chidambaram and his brother P. Palaniappan. Earlier on December 13, when the case came up for hearing, Mr. Justice Rajaratnam observed "A perusal of the facts in Karpagambal Mills does not make it clear as to whether Halidon Marketing Private Limited (transferee) held the shares in the target company for a minimum of three years. We accordingly direct SEBI to file an affidavit informing the court as to when Halidon Marketing Private Limited was registered and how long did the company hold the shares of the target company. We are passing this order in view of the fact that consistency in interpretation of Regulations is a hallmark of a good Regulator.'' The SEBI Takeover Regulation stipulates that a minimum three-year shareholding in a company is necessary to transfer shares among the promoters.