SEBI accepts Takeover Code, buyout trigger point at 25%
The Securities and Exchange Board of India (SEBI) board has okayed the all-important Takeover Code.
Mandatory open offer size has been raised to 26% from 20% and the trigger point for buyout will now stand at 25% from 15%.
With this, companies will need to make mandatory open offer for further 26% stake after buying 25% in takeovers.
The non-compete fee, however, has been scrapped.
Takeover Regulations Advisory Committee (TRAC) recommendations have, by and large, been accepted, chairman UK Sinha told the press.
Apart from the Takeover Code, the other matters on the agenda include—common your-customer (KYC) norms for all SEBI-regulated entities, adoption of guidelines for infrastructure debt funds and a reconsideration of the clean chit given by the Bhave-led board to NSDL in the IPO scam .
Sources say the board could also accept the Gopal Mohan Committee's report on lack of regulatory supervision by National Securities Depository (NSDL) in the said scam.
Decision on the mandatory open offer size, non-compete fee, and the trigger point for an open offer too is likely.
Satyakam Mishra
reachsatyakam@gmail.com
http://equityconnect.blogspot.
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