October 10, 1997
PR No. 113/1997


Shri N Prasad acting in concert with certain NRIs and other corporate bodies had made an open offer for acquisition of shares of Vorin Laboratories Ltd., following an agreement to acquire 21.69% shares of the company. The offer opened on August 9, 1996 and closed on September 8, 1996. As per the provisions of SEBI (Substantial Acquisition of Share and Takeovers) Regulations, consideration to shareholders who have accepted shares under the open offer should have been made by October 8, 1996. However, the acquirer could complete the payment only by January 2, 1997 i.e. after a period of almost 3 months. For the delay in payment of consideration, in the interest of investors, SEBI has passed an order dated October 10, 1997 under Section 11B of SEBI Act, 1992 directing the acquirer, Shri N Prasad to pay interest @15% from the date the payment ought to have been made i.e. October 8, 1996 to the actual date of payment. This sets a precedent for other cases where payment of consideration is delayed.