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Sebi to decide on takeovers later this month

13 Apr 2011

Market regulator Sebi is working on revising norms on corporate governance aimed at evolving a modern regulatory framework according to its executive director Usha Narayanan.

She was speaking at an interactive session organised by apex chamber Assocham.

Sebi is also likely to give its final view on the Takeover Code for merger and acquisition deals at its board meeting scheduled later this month.

"We are in consultation process. Probably we will get it (Takeover Code) through in the next board meeting," Narayanan told reporters in New Delhi.

As per the guidelines for takeover proposed by a Sebi panel headed by C Achuthan in July last year, an entity buying 25-per cent stake in a company would need to make an open offer to the rest of the shareholders.

Currently the open offer is triggered with the acquisition of 15 per cent equity in the target company through market operations or through a negotiated deal.