Exemption Panel Reviewed

The Justice P N Bhagwati committee set up to review the takeover code met yesterday and discussed the role of the Justice S M Jhunjhunwala panel mandated to grant exemption from the code.

The exemption panel receives cases from the Sebi board under the code for a grant of exemption from making an open offer.

"The committee deliberated on the status of the panel. A discussion took place on whether the scope of the panel should be widened. The committee has asked Justice Jhunjhunwala and his team to express their views. A decision will be taken only in the first week of October," a member of the Bhagwati committee said.

The final meeting of the Bhagwati committee is expected in the first week of October.

The issues raised during the meeting include:

* The procedure to be followed for the reference of cases to the exemption panel.

* Granting a hearing before the panel if applicants wish to present their case.

* If fresh facts are brought before Sebi after the panel has made its recommendation, can the case be reverted to the panel.

* Should the panel have the benefit of the department's views on an application.

* Should the panel be informed of any previous correspondence that the applicant may have had with Sebi on the subject.

* Can Sebi reject applications if, prima facie, the application has flaws. Such as, an application made by the target company and not the acquirer.

* How does the panel satisfy itself that the statements made in the application are true. Should the application be filed with an affidavit.

* In cases where the application is made by a company, should the authority of the person making the application be backed by a board resolution.

* Should the panel's recommendations be communicated to the applicant before the hearing.