Categories: Schemes

SEBI Forms a Panel Headed by Justice Vazifadar to Review the Corporate Takeover Rules

Capital markets regulator Sebi has set up a high-level panel to review the takeover norms in a move to simplify and strengthen the current rules by adopting appropriate global practices. Also, the regulator will assess the current rules in the light of past judicial pronouncements and various informal guidelines issued by the capital markets regulator.

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About The Panel:

The 20-member committee will be chaired by former Chief Justice of Punjab and Haryana High Court, Shiavax Jal Vazifdar. Apart from Vazifdar, other members of the panel include Sundareswaran S Managing Director (MD) at Morgan Stanley Financial Advisors; Rajendra Kanoongo, Joint MD of Mark Corporate Advisors; K Srinivas MD of Saffron Capital Advisors, Ankur Verma, Senior Vice President at Tata Sons and Dolphy Dsouza Partner at E&Y.

In addition, Sudhir Kumar Jha, head of legal at HDFC Ltd and Sunil Sanghai, founder and CEO, NovaaOne Capital are part of the committee. Jha and Sanghai are also representatives of Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce & Industry (FICCI) respectively.

Need Of The Panel:

The panel, which has representatives of Sebi, stock exchanges BSE and NSE as well as law firms, will advise the regulator on matters related to substantial acquisition of shares and takeovers including measures to facilitate ease of doing business.

About Corporate takeover code in India:

With the opening of the Indian economy to the private sector and foreign investors, a need was felt to make a rule which will promote transparency in the case of Merger and Acquisition (M&A) of companies.

SEBI made the first comprehensive code for M&A in 1994 called  Securities and Exchange Board of India (Sebi) (Substantial Acquisition of Shares and Takeovers) Regulations.

The code has amended significantly twice. It was amended in 1997 on the recommendation of Justice P N Bhagwati committee. The code was again amended in 2011 by SEBI on the recommendation of the 2009 Achutan committee on corporate takeover.

Piyush Shukla

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