INDIA: Response from SEBI in relation to India SEBI Regulations 1997

Thursday September 15 2011

The Securities and Exchange Board of India has responded to a query regarding the India SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997. In July 2011, the SEBI Board approved changes recommended in a consultation paper which would increase the initial trigger for a public offer requirement from 15% to 25%, requiring offerors to make an offer to acquire an additional 26% of the company`s shares (currently 20%) and amend the definition of control. The query was concerned with when these reforms would be implemented. The Securities and Exchange Board responded as follows:

“The new reforms will be introduced through notification of new Takeover Regulations. The same may happen within one month or so.“