The Takeover Regulations Advisory Committee met industry representatives to discuss the amendments in the new mergers and acquisitions code.
The Finance Ministry is likely to finalise the proposed changes in the takeover code on mergers and acquisitions soon now. Once the Finance Ministry clears the amendments, it is likely to be approved by market regulator SEBI in its next board meeting for implementation.
While industry bodies have supported raising of the initial acquisition threshold to 25% from the current limit of 15%, the Institute of Chartered Accountants f India (ICAI) has suggested that the limit should be kept at 15%.
There is also a proposal which requires board of directors of a target company to appoint a committee of independent directors to provide recommendations to the shareholders on the open offer.
There are also divergent views on allowing open offer for 100% of the shares with ICAI opposing the move on grounds that this will result in more companies getting de-listed. This will reduce the market cap of Indian companies and investors will have lesser investment opportunities.
Source: Economic Times
