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Friday, Oct 25, 2002

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Grasim offer: Forum warns SEBI, FIs

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MUMBAI, Oct. 24

THE Investor's Grievances Forum (IGF) has said it will file public interest litigation against SEBI and financial institutions such as UTI, LIC and GIC if they fail to block the open offer by Grasim to shareholders of L&T at Rs 190 per share.

The offer is against the interest of small investors, IGF said. Mr Kirit Somaiya, President of IGF, said that SEBI and financial institutions are acting against the interest of small investors and delaying investigation.

He said legal notices have been sent to them for defaulting and indirectly helping the Birlas.

Mr Somaiya said small investors and also the investors like UTI, LIC and GIC, who are managing small investors' money, would benefit if the offer to them is also made at Rs 306 per share by Grasim.

The notice said SEBI has not only delayed the action but was also acting partially.

While passing an order four months back for takeover code violation by Reliance in disclosing its holding in L&T, SEBI did not declare the L&T transaction null and void.

Mr Somaiya said SEBI in past has declared these types of transactions null and void: in cases like Herberstons shares acquisition by Vijay Mallya and Kishore Chabbria.

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