The Securities and Exchange Board of India (SEBI) amended the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, with effect from 17 February to provide dissenting shareholders with an exit opportunity in terms of sections 13 and 27 of the Companies Act, 2013.
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On 12 April SEBI amended its guidance note on the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT regulations), clarifying that with effect from 17 February, the exit offer would also be exempted from the restriction on contra trading under the PIT regulations, and that the restriction on contra trading shall not, as in the case of buy-back offers, open offers, rights issues, further public offers, bonus issuances, etc., apply to exit offers.
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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
