12.05.2014
To
The Director
FIPB India
Department of Economic Affairs
Ministry of FinanceNew Delhi
Sub : Objection to the FIPB proposal by Sistema Shyam Teleservices Ltd
Sir,
I am a minority shareholder of Sistema Shyam Teleservices Ltd (SSTL) . There are 17000+ other minority shareholders like me.
Sir, from media reports I have come to know that FIPB is likely to consider an application by SSTL for increase of foreign promoter holding by issuance of fresh equity / conversion of preference shares. Such an approval, if given by FIPB will result in a major equity dilution of these 17000+ shareholders who have been running pillar to post since 7 years seeking justice and exit from the company.
Sir, I would like to bring to your notice that some of the minority shareholders of this company including the undersigned had filed a petition in Jaipur High Court against SSTL for non compliance of an earlier order of the same court dated Aug 2008. The said order (copy enclosed) directed the company to give an exit to the minority shareholders via exit offer or IPO. The contempt of the said order has resulted in the current petition COAP 45/2012 Jindal Securities and others Vs Sistema Shyam Teleservices Ltd
On May 9th 2014, SSTL through its counsel have given an undertaking to the Jaipur High Court for not changing its corporate equity structure till the date of the next hearing which is on July 11 2014. The copy of the daily order is awaited and will be forwarded to you shortly.
In light of the above matter and keeping in view the difficulties that these 17000 shareholders have been facing for so long, it is requested that this application by SSTL to FIPB be kept in abeyance pending the outcome of the petition at the Jaipur High Court.
Respectfully,
Alok Jain
To
The Director
FIPB India
Department of Economic Affairs
Ministry of FinanceNew Delhi
Sub : Objection to the FIPB proposal by Sistema Shyam Teleservices Ltd
Sir,
I am a minority shareholder of Sistema Shyam Teleservices Ltd (SSTL) . There are 17000+ other minority shareholders like me.
Sir, from media reports I have come to know that FIPB is likely to consider an application by SSTL for increase of foreign promoter holding by issuance of fresh equity / conversion of preference shares. Such an approval, if given by FIPB will result in a major equity dilution of these 17000+ shareholders who have been running pillar to post since 7 years seeking justice and exit from the company.
Sir, I would like to bring to your notice that some of the minority shareholders of this company including the undersigned had filed a petition in Jaipur High Court against SSTL for non compliance of an earlier order of the same court dated Aug 2008. The said order (copy enclosed) directed the company to give an exit to the minority shareholders via exit offer or IPO. The contempt of the said order has resulted in the current petition COAP 45/2012 Jindal Securities and others Vs Sistema Shyam Teleservices Ltd
On May 9th 2014, SSTL through its counsel have given an undertaking to the Jaipur High Court for not changing its corporate equity structure till the date of the next hearing which is on July 11 2014. The copy of the daily order is awaited and will be forwarded to you shortly.
In light of the above matter and keeping in view the difficulties that these 17000 shareholders have been facing for so long, it is requested that this application by SSTL to FIPB be kept in abeyance pending the outcome of the petition at the Jaipur High Court.
Respectfully,
Alok Jain
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