Hostile Takeovers

Indian legal system – with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2007 (the Takeover Code) being the legislation on point - is friendly to incumbent shareholders and management and is unfriendly to raiders. However, a reading of the Takeover Code would reveal that it does not prohibit hostile takeovers, and even more, it in fact imposes various restrictions on incumbent promoters and management once an open offer is made, thereby enhancing the leverage available to the hostile acquirer.so you must need to comply with the restriction imposed.