Bankers counsel in India expect revised takeover rules
to have little impact unless implementation issues are
The Securities and Exchange Board of India (Sebi) last week
announced changes to Indias Takeover Code, which included
raising the threshold at which the takeover regulations are
triggered to 25% from 15%, and the minimum compulsory open
offer to 26% from 20%. The new regulations will also disallow
the payment of a non-compete fee to promoters.
Kotak Mahindra Capitals chief legal and compliance
offer, Ajay Vaidya, said the increase of the trigger threshold
from 15% to 25% would not be helpful unless certain regulatory
conflicts and issues regarding put and call options were
Regulators particularly needed to address inconsistencies
between Indias competition and takeover rules, he said.
In competition law the threshold is still 15% for