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HindustanTimes Tue,30 Sep 2014

Sebi may amend takeover norms, control definitions

PTI  New Delhi, July 27, 2014
First Published: 22:45 IST(27/7/2014) | Last Updated: 00:32 IST(28/7/2014)

Securities and Exchanges Board of India (Sebi) may soon consider some changes in its takeover norms for listed companies, including in the provisions governing price offered to minority investors and those defining change in control.

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These changes would be part of efforts to further safeguard the interest of smaller investors in case of merger and acquisition (M&A) transactions involving listed companies, while also making the compliance easier for the concerned entities.

The proposals are so far in the initial stages and any final decision would be taken after detailed discussions among all the stakeholders, sources said.

The changes would also take into account the related provisions of the new Companies Act, which came on April 1, 2014.

Besides, Sebi plans to incorporate certain provisions to remove ambiguities that have come to light in the existing regulations including on issues like definition of control.

Sebi had earlier this year probed the Rs. 2,060-crore Jet-Etihad deal after Etihad had has rejected any obligation to make an open offer for minority shareholders.


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