Open Offer Obligation: Indirect Acquisition

1. INTRODUCTION

In an informal guidance issued by the Securities and Exchange Board of India ("SEBI") on June 23, 2023, it has explained that the exemption available under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ("Takeover Code") for an inter-se transfer of shares amongst a promoter and its immediate relatives. The informal guidance was sought by Vidli Restaurants Limited ("Target Company") in relation to the exemption available under regulation 10(1)(a)(i) of the Takeover Code regarding an inter-se transfer of shares amongst a promoter and its immediate relatives from the obligation of making an open offer under the Takeover Code.

2. PROPOSED TRANSACTION AND THE QUERIES