On April 22, 2020, SEBI proposed to relax the pricing norms for
preferential issues by financially stressed listed companies as
well as grant exemption from making an open offer, if the
acquisition were to result in the acquirer acquiring more than 25%
voting rights in the investee company ("Consultation
Paper"). SEBI invited public comments to the
Consultation Paper.
On June 22, 2020, SEBI notified the proposed relaxation by
adding a new regulation, i.e. Regulation 164A to the Securities and
Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018 ("ICDR")
and sub-regulation (2B) to Regulation 10 of the SEBI (Substantial
Acquisition of Shares And Takeovers) Regulations, 2011
("SAST").
