Overtaken By The Takeover Code

Sebi may do well, therefore, not to cast in stone its new regulations on takeovers. The UK has been wise enough to keep its City of London guidelines one step below a legal status. Similarly, India may have to guard against opening a legal Pandora's box.

Definitional issues in the draft can keep lawyers busy. Acting in concert is a phrase borrowed from the UK. For instance, is an acquirer acting in concert with his banker who provides him takeover finance? What exactly is control? The best efforts of the able draftsmen of the committee have left much room for doubt. For this reason, there should be a transitional phase in which the new draft regulations should be implemented in spirit rather than in letter