Takeover rules for unlisted companies only protect the price, say experts

According to legal experts, a takeover is when a non-controlling shareholder takes control and a squeeze-out is when a controlling shareholder squeezes out minority shareholders

India has perhaps become the first major country to bring out takeover rules for unlisted companies. However, a week after it was notified, the jury is still out on the implications of the regulations. Experts point out that there are several ambiguities in the rules and that the exact purpose is not clear, given that takeover rules had so far been limited to public listed companies. 

“The intention even when the provision (takeover rules for unlisted companies) was first introduced in the Companies Act in 2013 was not clear. It seems to be a departure from the stance that you cannot