What are the objectives of Sebi takeover code?

The Takeover Code provides for an acquirer holding 25% or more of the shareholding of the target company to make a voluntary open offer. Acquisitions pursuant to the voluntary open offer will not trigger the mandatory open offer obligations.

What is the significance of SEBI takeover regulation?

The Takeover Regulations provide a particular system to acquirers to make Voluntary Offers to public investors. A Voluntary Offer might be made by a current investor or an acquirer who holds no shares in the target company. The dispatch of a Voluntary Offer is dependent upon the satisfaction of specific conditions.

Which companies does the Takeover Code apply to?

The Takeover Code applies to any public company which has its registered office in the UK, the Channel Islands or the Isle of Man, as well as to some private UK companies. It also applies in part to some companies incorporated in the European Economic Area which are listed in the UK.

What is open offer under takeover code?

The open offer is thus a fancy legal terminology to describe the takeover offer whereby to acquire another listed company (Target) an acquirer has to propose an offer to its existing shareholders to sell their shares at an offer price determined by the acquirer. The share acceptance is done on a proportionate basis.

What are the 5 major functions of SEBI?

Functions of SEBI It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.

What is takeover and its types?

A takeover or acquisition is the purchase of one company by another. We call the purchaser the bidder or acquirer, while the company it wants to buy is the target. There are different types of takeovers, including friendly, hostile, and backflip ones. There are also reverse ones.

Why Hostile takeovers are difficult in India?

Conventional wisdom suggests that hostile takeovers by foreign enterprises will not occur in India because of (i) the prevalence of controlling shareholders in most Indian corporations and the significant shareholding of Indian financial institutions that generally side with controllers, (ii) the necessity of obtaining …

What is a Rule 9 Whitewash?

by Practical Law Corporate. A note on the whitewash procedure under Rule 9 of the Takeover Code and the circumstances in which the Takeover Panel may grant a waiver from the requirement to make a general offer under Rule 9 of the Takeover Code.

Is the Takeover Code binding?

The Takeover Code, or more formally The City Code on Takeovers and Mergers, is a binding set of rules that apply to listed companies in the United Kingdom, such as those trading on the London Stock Exchange. Many of its provisions are mirrored in the EU Takeover Directive.

What if open offer fails?

If it fails, all the shareholders will be paid the open offer price. “If these approvals are not received, the delisting element of the open offer would stand rendered void and the open offer would continue with the takeover price,” says the SEBI paper.

Can I sell my rights issue?

The shareholders not willing to subscribe to their rights issue can sell their rights in the open market through the rights entitlement trading platform of the stock exchange or via off-market transaction. This is known as the renunciation of rights shares.

Which is the main function of SEBI?

SEBI is a statutory regulatory body established on the 12th of April, 1992. It monitors and regulates the Indian capital and securities market while ensuring to protect the interests of the investors, formulating regulations and guidelines.

When did SEBI come out with Takeover Code?

In 1994 SEBI came out with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1994. Later SEBI Takeover Code has been rechristened by enacting SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997 substituting SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1994.

Which is the best list of SEBI regulations?

List of All SEBI Regulations (Updated)        Issued Year Regulations 2009 Securities and Exchange Board of India ( 2008 Securities and Exchange Board of India . 2008 Securities and Exchange Board of India ( 2008 Securities and Exchange Board of India (

When was SEBI rechristened as substantial acquisition of shares?

In 1997 SEBI Takeover Code has been rechristened by enacting SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997 substituting SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1994.

Who is the chairman of Trac of SEBI?

In September 2009, the Takeover Regulations Advisory Committee (TRAC) under the chairmanship of Mr. C Achuthan was constituted by SEBI with the mandate to examine and review the SEBI (SAST) Regulations, 1997 and to suggest suitable amendments, as deemed fit.