INDIA: Further details on possible SEBI amendments to India takeover rules

Monday July 28 2014

Further to the update of 21/7/14 it has been reported that SEBI may soon consider changing India takeover rules for listed companies. Areas for proposed change include the provisions concerning the price offered to minority investors and those detailing change in control, following uncertainties that arose in the current regulation.

The proposed changes would also have to consider the related provisions of the Companies Act which came into force on 1 April 2014
In an attempt to prevent possible manipulation in the share price of the target company, SEBI may consider changing the pricing mechanism for takeover offers.

Further suggestions highlight the possibility of delinking the takeover price from the prevailing share price.

At this stage proposals are in the initial stages, a further update will be provided once there have been developments.