Takeover norms for unlisted firms getting finalised, to be unveiled soon

The Ministry of Corporate Affairs is giving final touches to the takeover code for unlisted companies and it is likely to be introduced soon, a senior government official told Business Standard.

The new rules, which are under consideration, will allow a person alone or together with other parties owning 75 per cent in an unlisted company to trigger a takeover of the entire shareholding by moving the National Company Law Tribunal (NCLT). 

Unlisted companies have no formal takeover code and shares are transferred on the basis of contracts and agreements.

“We want to bring a mechanism which is not very