Sebi sops to stressed companies: Is the minority getting a raw deal?

Close to a million small shareholders have stake in nine NCLT-bound companies

The Securities and Exchange Board of India (Sebi) has extended a helping hand to the Reserve Bank of India (RBI) in the war on stressed assets by relaxing a couple of regulations to enable a turnaround of distressed companies.

After representations that the pricing and open offer obligations might put off potential investors in these companies, Sebi in its board meet last week decided to provide these exemptions. Official statements said the exemption from open offer under the takeover regulations would be applicable for resolution plans approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code,