The takeover panel of Sebi has also rejected the acquiring company's alternative request for granting partial exemption for making an open offer to the public to acquire 8.62 per cent stake in Malcom India instead of the stipulated minimum level of 20 per cent. Delta Plus has the requisite FIPB approval to increase its stake in the company to 24 per cent from the present 13.38 per cent.

A press release issue by Sebi on Tuesday, said the takeover panel considered the matter and is of the view that the acquirer's present shareholding of 4.26 per cent for the last three yaers is lower than 5 per cent as requiredby Regulation 3(1)(e)(iii) of Sebi's Takeover Code and the balance period of sixteen months being a fairly long one. Based on such considerations, the panel has recommended the rejection of the exemption application given by Delta Plus. On the alternative request made by the French company for partial exemption, the Sebi panel notes that it is not clear whether the company applied for FIPB approval to acquire more than 24 per cent holding in Malcom India but the FIPB approved a total 24 per cent holding by Delta.