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Sebi asks Chatterjee to disclose Modi Rubber holdings

The Securities and Exchange Board of India has asked Purnendu Chatterjee of George Soros Group to furnish details about his holdings in Modi Rubber, following alleged breach of Takeover Code provisions while acquiring over 10 per cent holding in the company.

"The capital market regulator has sought information about his holding in the company in the light of alleged failure on his part to report to the company on crossing 5 per cent shareholding mark as per the Takeover Code norms," said Sebi sources.

"We have also sought information about the shareholding information from the company," they added.

Chatterjee is believed to have acquired 13-14 per cent holding in MRL and has not reported to the company and the stock exchange as mandated by the Takeover Code.

Earlier, financial institutions had decided not to participate in MRL's open offer made by promoters, including BK Modi and VK Modi and instead may make a counter-offer.

There were serious lapses in management and corporate governance practices followed by MRL management, Industrial Development Bank of India, the lead financial institution said.

IDBI had said the revised offer of Rs 81.50 per share was not in line with the indicative offer made by B K Modi and V K Modi to the institutions earlier for acquiring FIs' holding.

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