Sebi probes takeover code violations at United Spirits

$75-mn severance for Vijay Mallya may result in change of control

The Securities and Exchange Board of India (Sebi) is likely to issue an order against Anglo-Dutch liquor maker Diageo and United Spirits for violation of the takeover code. 

Sources said Sebi had taken the view that the $75 million (Rs 515 crore) severance package to former United Spirits promoter Vijay Mallya was in violation of the securities law, as it was not a part of the agreement at the time of making the open offer. 

The severance package could even warrant another open offer by Diageo to United Spirits shareholders because Sebi feels it has resulted in a change of ownership from