Takeover Code

SEBI has vide its notificationd dated 16th June, 2020 amended the SEBI (Substantial Acquisition of Shares & Takeovers), Regulations 2011 as follows:

Regulation 3(2) has been amended by introducing a new proviso before all the existing provisos which allows the promoter of a company to go beyond the 5% creeping acquisition limit per year but upto 10% only pursuant to a preferential issue of equity shares by the target company. Further this is allowed only during this financial year 2020-21. They cannot however breach the maximum permissible non public shareholding limits stipulated in the regulations.

Further regulation 6(1) has amended whereby first proviso to reg 6(1) has been put on hold until 31st March, 2021. The first proviso provided that where an acquirer has acquired shares in the preceding 52 weeks without attracting obligation to make a public announcement of an open offer, then he shall not be able to make a voluntary public announcement of an open offer for acquiring shares under this regulation.

The copy of the amendment is to be found here

https://www.sebi.gov.in/legal/regulations/jun-2020/securities-and-exchange-board-of-india-substantial-acquisition-of-shares-and-takeovers-amendment-regulations-2020_46884.html

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