The Hindu Business Line : Keep off L&T stocks, SEBI tells Grasim

THE Securities and Exchange Board of India, which is investigating Grasim's acquisition of its initial stake in L&T last year, today directed the company not to acquire further shares of L&T in any manner until further advice.

In a letter sent to the company through its merchant banker, SEBI said: "Grasim should not acquire any further shares of L&T in the open market or through negotiation or otherwise with effect from November 29, 2002 until further advice." This means Grasim cannot even exercise the creeping acquisition route to acquire L&T shares, clarified a company official. Its open offer for L&T has already been stalled by SEBI.

Grasim currently has a stake of over 15 per cent stake in the company.

SEBI's directive follows the order of the Securities Appellate Tribunal (SAT) yesterday rejecting Grasim's appeal for interim relief against the SEBI stay on its open offer for 20 per cent shares of Larsen and Toubro.

In a notice to stock exchange referring to the SAT order of yesterday Grasim said: "the main appeal on merits is still to be heard by SAT."

SEBI is also understood to have today asked Grasim for further information regarding its acquisition of 10.05 per cent equity stake of L&T from Reliance. SEBI has started investigations into this acquisition, for which purpose it has stalled Grasim's open offer.

A Grasim spokesperson said: "Grasim has always co-operated with SEBI and will continue to do so. We will provide information as requested by SEBI."

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