Takeover Code

The Board considered the Report of the Takeover Regulations Advisory Committee (TRAC) and accepted most of the recommendations of TRAC. Major among them include the following: (a) Initial trigger threshold increased to 25 % from the existing 15%. (b) There shall be no separate provision for non-compete fees and all shareholders shall be given exit at the same price. Full Article

Finance Ministry is likely to finalise the proposed changes in the takeover code on mergers and acquisitions after a meeting with industry and other stakeholders tomorrow. The Takeover Regulations Advisory Committee chaired by Chief Economic Advisor Kaushik Basu will discuss the amendments in the code as proposed by the C Achuthan headed Sebi panel, a Finance Ministry official said. Full Article

Market regulator Sebi is likely to give its final view on the Takeover Code for merger and acquisition deals at its board meeting scheduled later this month. "We are in consultation process. Probably we will get it (Takeover Code) through in the next Board meeting," Sebi Executive Director Usha Narayanan told reporters on the sidelines of an Assocham event here. Full Article

The single-most important regulation in India, governing the acquisition of shares or control in an Indian listed company is the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, or the Takeover Code. In the backdrop of changing needs of a dynamic Indian economy surging at a growth pace of more than 7 per cent over the last few years, this code has been tested during many a corporate takeover battle in India, observes Girish Vanvari, Executive Dire.. Full Article

Sebi has once again attempted to walk the tightrope not by imposing restrictions, but by encouraging buying on bourses by relaxing the Takeover Code to extend creeping acquisition limit beyond 55%, if done on the floor of the stock exchange. With stock markets plummeting and most regulators imposing harsh measures like banning short selling, Sebi has once again (after relaxing restrictions on participatory notes) attempted to walk the tightrope for discouraging further s.. Full Article