The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, have been the single-most important regulations for listed companies in India.
While they have served the capital market well, they have been plagued by ambiguities and drafting lacunae. In response, SEBI has acted proactively and made certain amendments and provided key clarifications to various facets of these regulations, which are known as the Takeover Code.
Moving with the times
As a sequel to these amendments, on 4 September 2009 SEBI constituted the Takeover Regulations Advisory Committee (TRAC) to review the Takeover Code and recommend amendments. Subsequently in July 2010, TRAC submitted an entire new scheme of the regulations, in a bid to make them commensurate with India’s position as the fourth largest economy in the world, in terms of purchasing power parity.
Arindam Ghosh is a partner at Khaitan & Co in Mumbai where Moin Ladha is an associate. Khaitan & Co is a full-service law firm with offices in Bangalore, Kolkata, Mumbai and New Delhi.
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