Bankers’ counsel in India expect revised takeover rules to have little impact unless implementation issues are addressed.

The Securities and Exchange Board of India (Sebi) last week announced changes to India’s 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 Capital’s 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 resolved.

Regulators particularly needed to address inconsistencies between India’s competition and takeover rules, he said. “In competition law the threshold is still 15% for companies...