Sebi relaxes takeover norms

Capital market regulator Sebi today eased takeover norms for companies whose board has been superseded by the government, under which suitors such as those for Satyam Computer need not make an open offer.

The amended rules also does disallows open offers from rival bidders if an acquirer has already made an open offer.

The regulator said the amendment to the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, provides for "relaxation from the strict compliance of provisions of Chapter-III in certain cases".

Chapter-III deals with mandatory open offer if an entity acquires 15 per cent stake in a company, as also for acquisition or change of control of the company, among others.

Sebi, on an application made by a target company, said it can relax any or more provisions of this chapter if certain conditions are met. It was referring to cases where central, state government or any other regulator having superseded the board of a company.

The regulator had earlier this month said it would relax the takeover norms to deal with cases like Satyam Computer, whose government-appointed board had sought relaxation in the acquisition rules.

The government had superseded the IT company's board after the company founder Ramalinga Raju disclosed on January 7 that he had fudged accounts for years.