Sebi panel favours 100 percent open offer

Takeovers are set to get costlier with a Sebi panel favouring making it mandatory for the acquirer to make an offer for up to 100 per cent stake in any listed company.As of now, an open offer for a minimum of 20 per cent in the target company is required to be made by any entity that has purchased 15 per cent equity, either from the promoters or from the open market.

The Securities and Exchange Board of India has set up a Takeover Regulatory Advisory Committee, with former Securities Appellate Tribunal presiding officer C Achuthan as chairman.

The Committee, which prepared the report in consultation with the various stakeholders, is believed to have recommended making suitable changes in the existing takeover regulations.