According to the BS report, the sources said that the regulator is planning to do away with the provision that lets a ‘competent authority’ to exempt an acquirer from the open offer requirement.
Only a court or a tribunal is likely to be allowed to provide such exemptions, the report added.
The move is to ensure that the exemption provided is not misused, said the sources.
Market regulator Securities and Exchange Board of India (Sebi) is considering to tighten the takeover rules that are applicable to firms undergoing bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC), Business Standard reported, citing sources.
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According to the BS report, the sources said that the regulator is planning to do away with the provision that lets a ‘competent authority’ to exempt an acquirer from the open offer requirement. Only a court or a tribunal is likely to be allowed to provide such exemptions, the report added.
Currently, the norms allow a ‘competent authority’ to provide an open offer exemption and the regulations have not defined as to who can act as a ‘competent authority’. The authority can be a sector regulator or ministry.
The move is to ensure that the exemption provided is not misused, said the sources, adding that Sebi is also looking to change the wording to ensure that the exemptions are given only to bankers or financial institutions and not to other entities.
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