S Chand family trust exemption highlights the conditions attached to ownership succession
On 12 October 2026, SEBI granted DKJ Ownership Trust an exemption from the open-offer requirements for its proposed acquisition of 70 lakh shares, representing 19.85% of S Chand and Company Limited, from promoter Neerja Jhunjhnuwala. The application described the transfer as an internal family reorganisation intended to streamline succession and reduce the potential impact of future family disputes on the company.
SEBI considered that the trustees and beneficiaries were promoters or their immediate relatives or lineal descendants, and that promoter-group control, aggregate promoter holdings and public shareholding would remain unchanged. The exemption is subject to conditions, including compliance with the representations and trust arrangements, a post-acquisition report within 21 days, and completion within one year.
The order preserves applicable disclosure, insider-trading and listing obligations. For independent directors, the case shows why ownership succession needs its own governance review. Trust terms, beneficial interests, voting arrangements and public-shareholder protections need to be understood separately from decisions about who will manage the business.
