The Securities and Exchange Board of India (SEBI) issued a notification on 17 February to amend the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, by inserting chapter VI-A, which gives dissenting shareholders an opportunity to exit.
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The provisions of chapter VI-A apply to an exit offer made by promoters or shareholders in control of an issuer company to the dissenting shareholder under sections 13(8) and 27(2) of the Companies Act, 2013. The amendment specifies the conditions for an exit offer, eligibility of shareholders to use the exit offer, exit offer price, the manner of providing an exit to dissenting shareholders, and provisions relating to an exit offer which results in exceeding the maximum permissible non-public shareholding.
In connection with providing this exit opportunity, also on 17 February, SEBI amended the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, to exempt controlling promoters or shareholders from obligations under these regulations in relation to the acquisition of shares or voting rights of a company under chapter VI-A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations.
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