The Securities and Exchange Board of India (SEBI) gave the green light to Sanjay Shah, promoter of the distributor of placement funds, prudent Corporate Advisory Services, to offer some of its actions to the employees of the company as an appreciation token.
According to a report by The Economic Times, Shah wanted to distribute a value of RS 33 share between 650 employees, which also included staff members committed to his home.
He intends to give 1,75,000 shares, which represents 0.4% of his participation in cautious towards his employees to celebrate 25 years of activity. All the recipients worked with him and cautious for three years.
Corporate Corporate Advisory Services LTD actions increased 1.45% to Rs 1,897.15 in the trade on Wednesday. The turnover on the counter arrived at Rs 31.88 Lakh, commanding a market capitalization (M-CAP) of RS 7 855,47 crores. Last verification on the ESB, there were 3,592 purchase orders against the sale prescriptions of 919 shares.
Shah told Financial Daily that he wanted to surprise employees and make them feel like precious members of the company.
However, the recipients of the donation had to be classified as members belonging to the group of promoters in accordance with the securities directives in India. However, Shah did not want this, as this would affect the company’s promoter’s detention structure and control dynamics.
According to the report, Shah has approached SEBI to request an exemption citing that the reclassification of the promoter group would dilute the value of gesture promoters and discouragement to reward employees of personal wealth. He said that the recipients did not meet the promoter’s criteria and that the actions were not intended for cautious management staff. He also declared that the situation would mislead investors concerning the holding of promoters.
SEBI, after hearing the arguments, exempted Shah from the regulation. He also said that the exemption is specific to this case and should not be treated as a precedent.
Shah holds approximately 42% in cautious, evaluated at RS 7,797 crores, while her two daughters and family members hold 13%.
