PNB Housing moves SAT against SEBI’s halting of preferential issue

The capital market regulator has asked PNB Housing to undertake the valuation of shares from an independent valuer before moving ahead with the issue.

Mumbai: PNB Housing Finance has filed an appeal before the Securities Appellate Tribunal (SAT) against the SEBI directive to halt the company’s proposed preferential issue of shares worth Rs 4,000 crore.

In a letter date June 18, the Securities and Exchange Board of India (SEBI) directed PNB Housing Finance to stall the proposed preferential issue of shares to entities led by the The Carlyle Group Inc.

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In a regulatory filing on Monday, the company said: “Company 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 capital market regulator has asked PNB Housing to undertake the valuation of shares from an independent valuer before moving ahead with the issue.

“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 (articles of association) 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,” SEBI said in its letter.