Mumbai, Feb 27: The proposed second amendment to the Takeover guidelines isexpected to spill over to the next fiscal as the committee headed by JusticePN Bhagwati, looking into the various aspects of amendments, is yet tofinalise the draft proposals."The draft proposals are ready. But the committee has to sit to take finalview on the proposals before the regulator effects changes in the TakeoverCode. This is expected to be done in the early part of next fiscal,"
Securities and Exchange Board of India (Sebi) chairman DR Mehta said whileaddressing the Rotary Club of Mumbai here on Tuesday. The sub-group of thecommittee, which met here on January 15, has finalised the draft report.
Though the committee has convened two meetings since then the meetings couldnot materialise due to various reasons.
The recommendations of the committee are expected to touch upon issues likeremoval of ceiling on creeping acquisition, whether there be any lock-inperiod, changes in maximum limit of acquisition by acquirer prior to openoffer, minimum and maximum offer sizes, apart from others.
Allaying fears on safety of the market, Mr Mehta said that the advent ofcomputerisation, which had made it possible to effectively monitor thetrades and the trading volumes of stock exchanges, was backed by variousmargins to the tune of at least 48 per cent at any time. Besides, there wereother emergency covers like Trade Guarantee Fund (TGF) and card exchange(membership cards) values to meet any eventuality.
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