PART - III - Udyog Bandhu

Authority against any “Grave Offence” or “fraud” or have not been convicted by any Court oflaw. It had been clarified vide O.M. NO.4/20/2001-DD II dated 9 January 2002 that an offencewill be treated as grave when “grave offence” is:a. Only those orders of SEBI are to be treated as coming under the category of “graveoffences” which directly relate to “fraud” as defined in the SEBI Act and / orregulations.b. Only those orders of SEBI that cast a doubt on the ability of the bidder to managethe public sector unit when it is disinvested, are to be treated as adverse.c. Any conviction by Court of Law.d. In cases in which SEBI also passes a prosecution order, disqualification of thebidder should arise only on conviction by the Court of Law.A detailed book on “Guidelines on Qualification for Bidders” has also been published bythe Ministry of Disinvestment for reference of prospective bidders that is enclosed as AnnexureVI. These can also be accessed from the website of the Ministry of Govt. of India.On receiving the details through the above process, the interested parties are requested tosubmit their EOI to the Advisors/ concerned Ministry by a fixed time and date.3.1.4 Qualification of Companies/ConsortiaBased on the information submitted in EOIs, the Ministry and the advisors will carry out anevaluation of the qualifications of the companies / consortia and subsequently notify in writingthose companies / consortia which qualify to participate in the next stage of the process.3.2 Stage II : Request for Proposal (RFP) & Submission of Bids3.2.1 Request for Proposal & Bid ProcessThe proposed Strategic Sale process, consequent to the submission of EOI, involves a detaileddue diligence exercise to be undertaken by the Bidder followed by submission of a FinancialBid.The due diligence phase involves providing a Bid Pack containing various documents to theBidder. Besides, visits to the Data Room, including site visits to the units of the company forma part of the due diligence phase. At the end of this phase, the Bidder is expected to submit hisFinancial Bid. Details of form and content of the Bids and the proposed due diligence processare given in RFP.Notification to qualified / short listed parties & issue of Bid PacksA Bid Pack containing the following documents is made available to the qualified / shortlistedbidders, along with RFP after getting a confidentiality undertaking signed by them:i) Confidential Information Memorandum (CIM)ii) Previous 3 years' audited annual accounts of the company, andiii) Data Room Rules.The following documents (which may or may not form a part of the Bid Pack) are also madeavailable to the qualified / shortlisted bidders in due course:89