SEBI to amend take over norms; bring ADRs, GDRs on par with equity
22 Sep 2009
The Securities Exchange Board of India (SEBI) has decided to revise provisions of the takeover norms. The SEBI board, which met today, also decided to amend the listing agreement/ICDR regulations and make compliance with prescribed accounting standards mandatory.
SEBI has decided to extend the facility of anchor investors to issue of IDRs on similar terms as applicable to public issues made by domestic companies.
It also decided that at least 30 per cent of issue size of the IDRs be reserved for allocation to retail individual investors, who may otherwise be crowded out.
The market regulator will amend SEBI (Substantial Acquisition of Shares and Takeovers) Regulations (Takeover Regulations) to make it applicable to open offer obligations in case of GDRs/ADRs etc.
In a press conference, SEBI chairman CB Bhave said the board has approved the changes in the Indian Depository Receipts (IDR) norms and these will be prescribed through amendments to listing agreement.
SEBI will amend the Takeover Regulations to provide that where the ADR/GDR holders are entitled to exercise voting rights on the shares underlying GDRs/ADRs by virtue of clauses in the depositary agreement or otherwise, open offer obligations shall be triggered upon crossing the threshold limits set out under Chapter III of the Regulations.