Strategic support

Sebi's proposal will help disinvestment

The Securities and Exchange Board of India (Sebi) has released a consultation paper (“Review of Determination of Offer Price in case of Disinvestment of PSU Companies”) proposing to change open offer pricing norms for public sector undertakings (PSUs). While the changes could make PSU takeovers more attractive for strategic investors, these might reduce the potential returns for minority shareholders. The logic of the proposal is pragmatic, considering the processes involved in PSU divestment. Under the rules in the Sebi Substantial Acquisition of Shares and Takeovers Regulations, 2011, an acquirer has to make an open public offer for an additional 26