The committee has also defined control by fixing broad parameters for control and change in control. It has now presented a clear distinction between change in control and change in management. However, according to sources, legal definition of control, however, is still to be made clear.
The main changes include fixing of a uniform rate of 2 per cent in the provision for consolidation of acquisition in cases where the acquirer holds between 10 and 51 per cent. Earlier, the draft had provided for creeping acquisitions at the rates of two per cent for existing holdings between 10 and 25 per cent and five per cent for holdings between 25 and 50 per cent.
If the existing management intends to consolidate its hold and acquire more than 2 per cent of stocks, it has to make a minimum public offer of 10 per cent. The panel has not accepted the governments suggestion that rights share picked up through the renunciation route should come under the purview of the code.
