Sebi Board Okays Steps to Make M&As Easier

The board of the Securities and Exchange Board of India (Sebi) Tuesday approved measures to make mergers and acquisitions of listed companies easier and allow the establishment of gold and social stock exchanges in the country. It also cleared proposals to tighten related-party transactions, launch silver exchange-traded funds (ETFs) and relax rules on superior voting rights (SVRs) for promotors of new-age tech companies, to encourage Indian startups to list locally.

ET was the first to report on September 27 that the Sebi board was set to approve the measures cited above at its meeting on Tuesday.

Acquires will be allowed to delist a target company seamlessly, as they will be able to launch open and delisting offers simultaneously, the regulator said. Currently, if an open offer is triggered by an M&A deal or an overseas amalgamation, then the entity has to implement three different public transactions to comply with Sebi rules. Following the board approval, Sebi will frame detailed guidelines to put these steps into effect. S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *