SEBI Forms 20 Members Committee To Review Corporate Takeover Rules
The new panel will be responsible to review the current rules in the light of past judicial pronouncements and various informal guidelines, which have been issued by SEBI till date. The committee having representatives from stock exchanges and law firms will also have to make suggestions and measures to facilitate ease of doing business.
The capital markets regulator of India, Securities Exchange Board of India (SEBI), has formed a high-level panel to review corporate takeover rules. This comes after the Asia’s third-biggest economy seeking establishment of contemporary M&A regime that that is burning followed by the Global Financial Crisis and the emergence of new buyout modes undergirded by private-equity financing. Such move may be the first anticipated overhaul in more than a decade.
The committee formed, will consist of 20 member which will be headed by former Chief Justice of Punjab and Haryana High Court, Shiavax Jal Vazifdar. The Achuthan committee reviewed the takeover code last in 2009.
The new panel will be responsible to review the current rules in the light of past judicial pronouncements and various informal guidelines, which have been issued by SEBI till date.
Out of all members of the committee, some others include Ankur Verma, senior vice president, Tata Sons; professor Umakanth Varottil, faculty of law, National University of Singapore; Sudhir Kumar Jha, head of legal, HDFC, Sunil Sanghai, founder of NovaDhruva Capital and Sundareswaran S, managing director, Morgan Stanley Financial Advisors.
The regulator will be receiving advises and suggestions from the panel on simplifying and strengthening the current norms by adopting appropriate global practices. The committee having representatives from stock exchanges and law firms will also have to make suggestions and measures to facilitate ease of doing business.
SEBI, in 2011, had retained and continued the inherent and basic objectives of control highlighted by Justice PN Bhagwati, when takeover regulations were overhauled considering the recommendations made by the late C Achuthan, former presiding officer of the Securities Appellate Tribunal (SAT). Justice Bhagwati had chaired the committee that reviewed the takeover code of 1997.