GAMMON INDIA LIMITED

Internet-based Securities Trading and Services
SEBI approved internet trading in January 2000. Internet trading takes place through order routing systems, which
route client orders to exchange trading systems for execution. Stockbrokers interested in providing this service are
required to apply for permission to the relevant stock exchange and also have to comply with certain minimum
conditions stipulated by the SEBI. The NSE became the first exchange to grant approval to its members for
providing internet-based trading services. Internet trading is possible on both the “equities” as well as the
“derivatives” segments of the NSE.
Trading Hours
In terms of circular dated October 23, 2009 issued by SEBI, the stock exchanges have been permitted to set their
trading hours (in cash and derivative segments) subject to the condition that the trading hours are between nine a.m.
and five p.m. and the exchange has in place risk management system and infrastructure commensurate to the trading
hours. The BSE and NSE are closed on public holidays.
Trading Procedure
In order to facilitate smooth transactions, in 1995, BSE replaced its open outcry system with BSE On-line Trading
facility in 1995. This totally automated screen based trading in securities was put into practice nation-wide. This has
enhanced transparency in dealings and has assisted considerably in smoothening settlement cycles and improving
efficiency in back-office work.
NSE introduced for the first time in India, fully automated screen based trading. It uses a modern, fully
computerised trading system designed to offer investors across the length and breadth of the country a safe and easy
way to invest. The NSE trading system called 'National Exchange for Automated Trading is a fully automated
screen based trading system, which adopts the principle of an order driven market, and operates on a price and time
priority basis and enables members from across the country to trade various types of securities efficiently.
Takeover Code
Disclosure and mandatory bid obligations for listed Indian companies under Indian law are governed by the
Takeover Code, which prescribes certain thresholds or trigger points that give rise to these obligations. The
Takeover Code is under constant review by the SEBI and was last amended on November 6, 2009. Since the
Company is an Indian listed company, the provisions of the Takeover Code apply to the Company.
The salient features of the Takeover Code are as follows:
The term “shares” is defined under the Takeover Code to mean equity shares or any other security, which
entitles a person to receive shares with voting rights but does not include preference shares.
Any acquirer (meaning a person who, directly or indirectly, acquires or agrees to acquire shares or voting
rights in a company, or acquires or agrees to acquire control over a company, either by himself or with any
person acting in concert with him) who acquires shares or voting rights (together with the company’s
equity shares or voting rights, if any, already held by such acquirers) that would entitle him to more than
5%, 10%, 14%, 54%, 74% or 90% of the shares or voting rights in a company is required to disclose the
aggregate of his shareholding or voting rights in that company to the company and to each of the stock
exchanges on which the company’s shares are listed at every such stage within two days of (i) the receipt of
intimation of allotment of shares or (ii) the acquisition of shares or voting rights, as the case may be. Such
company in turn is also required to disclose the same to the stock exchanges on which the company’s
shares are listed.
A person who holds more than 15% of the shares or voting rights in any company is required to make an
annual disclosure of his holdings to that company within 21 days of the financial year ending on March 31
(which in turn is required to disclose the same to each of the stock exchanges on which that company’s
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