20 Jul 2010
A SEBI press release informs us that The Takeover Regulations Advisory Committee constituted under the Chairmanship of C. Achuthan submitted its to SEBI proposing to overhaul the "Take Over Code" working towards the mandate of greater investor protection and benefit in the securities market. This Report of the Takeover Regulations Advisory Committee, running into about 140 pages, has proposed draft regulations to replace the existing law governing substantial acquisition of shares and takeovers.
The Report inter alia proposes to change the law relating to (i) Triggers for open offers, (ii) Indirect Acquisitions, (iii) Offer Size, (iv) Voluntary Open Offer, (v) Option to delist, (vi) Exemptions from open offer obligations, (vii) Offer price, (viii) Mode of payment, (ix) Competing offers, (x) Execution of the agreement that triggers open offer, and certain other governance issues.
Ever since the release of the Report, the market has been ripe with the implications of the proposed law. Even though the same is yet only in the stage of being released for public comments, the media has already garnered a view on the proposed changes. We personally liked the view on The Mint.