View on SEBI Taakeover Code by Rakesh Puri, Executive Director - Elara Securities Private Limited

Brief view on new SEBI Takeover code

SEBI takeover code, which governs takeover norms in India, is set for a major revamp, attracts the provision of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997. The said change is proposed for bringing more clarity from regulatory and compliance points of view. The new Regulations seek to bring fairness and transparency in its implementation. Taking into consideration growing M & A activities in India, it is crucial to modify the same. Main focus is on the protection of investors in shares or stock market. Under this new code, the introduction of a new clause in respect of open offer under the proposed Regulations would be for 100% i.e. for all the shares held by the shareholders in the target company with certain exceptions.

Mr. Rakesh Puri, Executive Director, Elara Securities (India) Private Limited

Source : Equity Bulls

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