Sebi to tighten takeover regulations for companies under IBC process

The move was aimed at reducing ambiguity and curb the misuse of the regulations

The Securities and Exchange Board of India (Sebi) plans to tighten takeover norms applicable to companies undergoing proceedings under the Insolvency and Bankruptcy Code (IBC). 

Sources said the capital markets regulator would do away with the provision that allowed a ‘competent authority’ to exempt an acquirer from the requirement of an open offer. Only a court or a tribunal would be allowed to provide such exemptions, they added. 

Experts said the move was aimed at reducing ambiguity and curbing the misuse of the regulations.

While at present the rules allow a “competent authority” to provide an open offer exemption, the