Sebi may exempt ONGC from making an open offer for HPCL shares

Govt may seek exemption saying it is restructuring of shareholding not resulting in ownership change

Oil and Natural Gas Corporation's (ONGC's) proposed acquisition of a 51 per cent stake in Hindustan Petroleum Corporation (HPCL) is likely to get a relaxation under the Securities and Exchange Board of India's (Sebi's) Takeover Code Regulation.

According to the Takeover Code, any entity buying more than 25 per cent stake in a listed entity has to make an open offer to acquire additional 26 per cent from minority shareholder. Typically, ONGC's HPCL buy should trigger the open offer. However, the government, which controls both the entities, is likely to seek an exemption from Sebi arguing that the deal is a