SEBI Board in its meeting on 21 June 2018 has inter alia resolved:

  1. To amend SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the Takeover Code 2011)
  2. To replace SEBI (Buy-back of Securities) Regulations, 1998 with the new of 2018
  3. To approve SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

Following are the key points of consideration based on these proposals.

Amendment in the Takeover Code, 2011

Existing Regulation

As per existing regulation 18(4) of the Takeover Code, Acquirer can make upward revision in open offer price or in no. of shares to be acquired under Open Offer, upto the day prior to 3 working days before the commencement of the tendering period. Upward revision in no. of shares is subject to the other provisions of these regulations.

Proposed Amendment

It has been decided to grant additional time for upward revision of open offer price till one working day before the commencement of the tendering period.

Here, regulatory body needs to address technicality w.r.t. Reg. 18(5) of the Takeover code where there is need for newspaper announcement with the intention to inform public about the revision prior to start of tendering period. If acquirer allowed to make the upward revision up to 1 working day prior to tendering period, the public announcement will reach to public after start of the tendering period.

Amendment in SEBI (Buy-back of Securities) Regulations

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