The Securities and Exchange Board of India (Sebi) has made it mandatory for companies to seek approval from stock exchanges before filing schemes for merger, restructuring or reduction of capital before high court.
In a circular, the regulator has asked the bourses to amend the listing agreement regarding disclosure pertaining to schemes of arrangement for merger amalgamation or reconstruction filed before the court.
Sebi said in clause 24 of the listing agreement, three new sub-clauses should be added which makes it mandatory for company to agrees that