SEBI Plugs Loopholes In Takeover Code

Considering the ambiguities in the interpretation of certain provisions of the Securities and Exchange Board of India ("SEBI") (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the "Takeover Code"), SEBI recently introduced certain important amendments to the Takeover Code. We have discussed herein below some of the important amendments.

MARKET PURCHASE KEPT AT PAR WITH NEGOTIATED PURCHASE

One of the important amendments is insertion of new Regulation 22(2A) to the Takeover Code. This amendment seems to have been introduced to plug the loophole with respect to the issue dealt in SEBI's informal guidance issued to R Systems International Limited ("Target Company") on July 09, 2012 and the Securities Appellate Tribunal ("SAT") order dated September 07, 2012.