The Securities and Exchange Board of India (SEBI) has constituted the Takeover Regulations Advisory Committee under the Chiarmanship of Mr. C. Achutan with the mandate to examine and review the Takeover Regulations of 1997 and to suggest the suitable amendments as deemed fit. The Committee has submitted its report on July 19, 2010 and structured its report into three parts:
a. Part I contains the salient features of the Proposed Takeover Regulations;
b. Part II contains the Committee deliberations and key recommendations;
c. Part III contains the draft text of the Proposed Takeover Regulations.
SEBI has placed the Report on its Website for public comments. The same can be accessed from the link given below.
The ICAI Committee on Financial Markets and Investors’ Protection is in a process of considering the report and inviting members at large to provide their comments/suggestions on the Report of the Takeover Regulations Advisory Committee for its consideration, compilation and submission.
We solicit your views/suggestions on the Report of the Committee in the following format:
| Sr. No. | Draft Provision / Recommendation of the Committee | Comment | Rationale |
| 1. | Insert reference to the draft provision / paragraph in the Committee’s Report | Provide your comment here | Specify your reasons / rationale for the comment |
We shall appreciate to receive the same by August 16, 2010 at cfmip@icai.org to enable us to forward the consolidated comments/ suggestions to SEBI.
Whenever there involves change of management control involving take over, it is fair to make buy back of shares of shareholders who do not approve such take over. This helps the minority shareholders who are always victims of take over. Thus limiting compulsory acquisition should be changed to buying back entire shareholding would leave no grievance.
Further, before approving such take over, SEBI should investigate whether there are any market manipulations resorted to.