PNB Housing Finance Limited appeals with SAT against SEBI letter on preferential issue

PNB Housing Finance Limited has filed an appeal before the Securities Appellate Tribunal against the letter issued by the Securities and Exchange Board of India on June 18, 2021.

The Company had received a letter from the Securities and Exchange Board of India ("SEBI") on June 18, 2021 calling upon the Company to comply with the legal provisions in the matter and ensure the following:

"13.1. The current resolution bearing item no. 1 (Issue of Securities of the company and matters related therewith) of EGM notice dated May, 31, 2021 is ultra-vires of AOA and shall not be acted upon until the company undertakes the valuation of shares as prescribed under 19(2) of AOA, for purpose of preferential allotment, from an independent registered valuer as per the provisions of applicable laws. The said report shall be considered by the Company's Board while deciding on the preferential issue of shares and warrants.

The Company and its Board of Directors had considered the SEBI Letter, and continue to believe that the Company has acted in compliance with all relevant applicable laws, including the applicable pricing regulations prescribed by SEBI, and the Articles of Association of the Company, and that such Preferential Allotment is in the best interests of the Company, its shareholders and all relevant stakeholders.

Shares of PNB Housing Finance Ltd was last trading in BSE at Rs.740 as compared to the previous close of Rs. 750.1. The total number of shares traded during the day was 22963 in over 1237 trades.

The stock hit an intraday high of Rs. 779 and intraday low of 715. The net turnover during the day was Rs. 17259398.

Source : Equity Bulls

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