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SEBI to allow counter-bid for Forbes Gokak

India's capital market regulator will allow a counter-offer for shares of diversified firm Forbes Gokak to stand even though the offer may have been made after the deadline, a top official said on Tuesday.

"The offer will continue. That is certain," D R Mehta, chairman of the Securities and Exchange Board of India, told reporters on the sidelines of a conference.

On Monday, Man-Made Fibres Private Ltd and a clutch of firms together made a counter-bid for a 20.11 per cent stake in textile and engineering company Forbes Gokak at Rs 88.50 per share.

Man-Made Fibres, a private investment firm, and a few of the other firms already own a 14.8 per cent stake in Forbes Gokak.

Their bid countered an earlier one made by private construction group, Shapoorji Pallonji Ltd, on October 15, for a 20 per cent stake in the company at Rs 80 per share.

Under Indian takeover laws, a competitive bid has to be made within 21 days of the announcement of the first offer.

"But suppose there is a delay -- I am not sure, we are examining it -- the party could be punished and punishment will be through the process of adjudication where the fine is Rs 500,000," Mehta said.

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