The eventful battle for Religare Enterprises tests Sebi's takeover code

Some legal experts believe the case may indicate the need for a review of Sebi's takeover norms

Last month, when Florida-based investor Digvijay ‘Danny’ Gaekwad approached the Securities and Exchange Board of India (Sebi) for permission to launch a “competing offer” to acquire controlling stake in New Delhi-headquartered financial services firm Religare Enterprises, the regulator “returned” his letters.

 

Gaekwad’s “competing offer” plea was against an open offer made by the Burman Group to acquire Religare, and though it quoted a higher price than the Burmans’s, Sebi stated that it was not an exemption application under Regulation 11 of the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The offer did not adhere to the timeline and