Business Standard

Interesting nudge from Sebi with takeovers

The thinking is, enabling infusion of funds into the company would be better than purchasing shares in the market


Somasekhar Sundaresan
It is an extraordinary measure that has taken everyone by surprise. The Securities and Exchange Board of India (Sebi) has amended the takeover regulations to enable an additional creeping acquisition of 5 per cent of the voting rights in listed companies within this financial year without making an open offer. The suspension of the obligation to make an open offer is available only to promoters if the hike in stake is by infusing money into the company and only within this financial year.
Under the takeover regulations, when any person along with those in concert acquires 25 per cent or more
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Jun 17 2020 | 10:47 PM IST

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