SEBI BOARD AGENDA: TAKEOVER CODE, INFRA DEBT FUND NORMS
Market regulator Sebi is likely to discuss the much-waited takeover code, norms for the proposed infrastructure debt funds and uniform KYC norms at its board meeting scheduled for July 28.
Other key issues like eligibility criteria for IPOs and electronic reporting on a Sebi unified platform are also on the agenda of the meeting that would be held in Mumbai.
Industry and other stakeholders are keenly awaiting a decision on the Achuthan committee report on changes to the takeover code governing mergers and acquisitions.
Two recommendations of the committee that came in for much debate were the 100 per cent open offer size rule which would provide an exit option to all shareholders of the target company and abolition of non-compete fees separately paid by an acquirer to the promoter of a target company.
However, the board is unlikely to clear the proposal for 100 per cent open offer, said a source.
The Sebi panel’s report also recommended that the initial acquisition threshold for a mandatory open offer be raised to 25 per cent of voting capital of the target company.
On the issue of uniform KYC norms for players like FIIs, mutual funds and brokerage customers, an official said: “As of now there separate know-your-customer (KYC) norms for different segments. In order to ensure seamless identification of customers in the securities market, we want to have an uniform KYC.”
SOURCE: Business Standard
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