'Norms In Pace With International Markets'

I feel that the takeover guidelines are certainly an attempt in the right direction keeping pace with the happenings in the international economies.

With the growing aptitude of the Indian corporates for raising monies in the overseas markets and the foreign institutional investors now playing a dominant role in the Indian capital market, I feel that a clearly defined takeover code has come at the right time.

The formulation of the takeover rules is a brave effort which would facilitate the positive aspects of the takeover and protect against the negative ones.

The rules aim to bring in fairness and transparency in the takeover bid and most importantly, the protection of the minority shareholders.

 

The takeover code would mark the beginning of a new era facilitating the positive aspects of a hostile take-over, wherein management's failure to perform effectively would become a target for a possible takeover.

It would certainly make the management more accountable for their performance and the ever existing possibility of the takeover would induce the existing management to perform effectively.

Certainly, the takeover of poorly managed and inefficient companies by better management would immensely benefit the shareholders, employees and the economy as a whole. The takeover bids under the new rules would also have a healthy effect on the capital market which at present is extremely sluggish with no positive signs of revival in the near future.

The draft takeover norms have made a positive attempt to provide for every possible eventuality in the takeover process and has plugged the loopholes and removed many of the ambiguities in the earlier existing guidelines.

I feel that the very