FinMin, industry to discuss Takeover Code today
Finance Ministry is likely to finalise the proposed changes in the takeover code on mergers and acquisitions after a meeting with industry and other stakeholders on Thursday.
The Takeover Regulations Advisory Committee chaired by Chief Economic Advisor Kaushik Basu will discuss the amendments in the code as proposed by the C Achuthan headed Sebi panel, a Finance Ministry official said.
The meeting will be attended by industry chambers FICCI, CII and Assocham besides some chartered accountants and members from the panel, the official said.
Once the Finance Ministry clears the amendments, it is likely to be approved by market regulator Sebi in its next board meeting for implementation.
The Takeover guidelines proposed by Achuthan panel in July last year calls for comprehensive modifications in the existing norms and if implemented would make corporate merger and acquisition deals costly.
The proposed changes in the existing norms have generated widespread opinion, a ministry official said.
"Before taking a final view on the matter (takeover code), it was felt that it will be appropriate to have an intensified discussions with all stakeholders for their views and observations," he said.
Earlier, market regulator SEBI had sought comments from various stakeholders on the Achuthan report.
Most number of comments came on the issue of buyback and non-compete fee, sources said.
As per the proposed guideline, an entity buying 25 per cent stake in a company will need to make an open offer to the rest of the shareholders.
Under the existing norms, the trigger point for making an open offer to shareholders was acquisition of 15 per cent equity in the target company through market operations or through a negotiated deal.