Business Standard

Interesting nudge from Sebi with takeovers

The thinking is, enabling infusion of funds into the company would be better than purchasing shares in the market

Image
Premium

Somasekhar Sundaresan
It is an extraordinary measure that has taken everyone by surprise. The Securities and Exchange Board of India (Sebi) has amended the takeover regulations to enable an additional creeping acquisition of 5 per cent of the voting rights in listed companies within this financial year without making an open offer. The suspension of the obligation to make an open offer is available only to promoters if the hike in stake is by infusing money into the company and only within this financial year.
Under the takeover regulations, when any person along with those in concert acquires 25 per cent or more
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in