It is not clear what prompted Sebi to come out with its statement on compulsory open offers by GDR/ADR holders who were buying more than 15 per cent of a company. A few months ago, when most felt that an open offer would have to be made if the Bharti-MTN deal was to go through since MTN was going to acquire 33 per cent of Bharti’s shares, Sebi came out with an informal guidance which suggested this was not needed. Sebi said that any deal structured through GDRs (and the Bharti-MTN deal was to be structured in this fashion) would not have to make the compulsory open offer. So what prompted Sebi to suddenly change its mind and say that if a deal was made was made through GDRs, it would be subject to the same rules that apply to other Indian companies?
Ashok Kumar, New Delhi
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