IndiaCatalog.com
India News
Search Web Directory
News Home
Sebi sticks to definition of 'control' for M&As
Posted on 9th September 2017
Mumbai: India's market regulator, the Securities and Exchange Board of India (Sebi), has decided to retain the power to take a final call on the definition of 'control' in mergers and acquisitions after the government advised it not to change the current regulation.

In 2016, Sebi had proposed to adopt the so-called bright-line tests for acquiring control under the takeover code. The regulator had proposed to provide a list of illustrative rights below the control definition which would state that following rights either individually or collectively won't tantamount to control.

Sebi said it received a number of comments from various stakeholders including the ministry of corporate affairs, RBI, industry bodies, intermediaries, advocates and investors. But since the responses were mixed, no particular option garnered overwhelming support among the stakeholders.

“The ministry of corporate affairs and few other stakeholders have opined that changing the current definition of `control' may reduce the regulatory scope and may be prone to abuse and that the current definition of `control' may not be changed and it would be more appropriate to take decisions on a case-to-case basis,“ the regulator said on Friday .

The former takeover committees too had recommended a broad definition of control and suggested that it should be left to Sebi to decide whether there has been an acquisition of control on the basis of facts of each case.

“It is felt that any change or dilution in the definition of control would have far reaching consequences since a similar definition of 'control' is used in the Companies Act, 2013 and other laws,“ Sebi said.

The takeover code states that control includes the right to appoint majority of directors or to control the management or policy decisions, which can be exercised by a person or persons acting individually or in concert, directly or indirectly , including by virtue of their shareholding or management rights or shareholders agreements or voting agreements or in any other manner.

In its discussion paper,the regulator had proposed two options-framework for protective rights and adoption of numerical threshold. For protective rights, Sebi had said veto rights not amounting to acquisition of control may be protective rather than participatory in nature.For numerical threshold, it had proposed to fix 25% voting rights.

“Considering the international practices and the current regula tory environment in India, the definition of control may be amended such that control is defined on the basis of the right or entitlement to exercise certain specified voting rights of a company,or the right to appoint certain number of directors of a company,“Sebi had said.

Related Companies: Securities and Exchange Board of India ( SEBI )   

Other Latest News
Bank of Baroda signs MoU with ten companies to loan Rs 500 cr
Posted on 21st July 2018
State-run Bank of Baroda signed a Memorandum of Understanding with ten companies including Uber, Oyo, Lava and Flipkart to provide loans to members in their supply chain like drivers and retailers in its efforts to raise its exposure to small enterprises.

“We want to target around 5,000 micro-entrepreneurs and spend at least Rs.500 crores in 2018-19,” said P S Jeyakumar, CEO of Bank of Baroda.


IRCTC to charge portals a fee on each ticket’s sale
Posted on 21st July 2018
MUMBAI: In a move that will make purchase of railway tickets from portals such as MakeMyTrip, Yatra, Paytm and Cleartrip more expensive, the Indian Railway Catering and Tourism Corporation (IRCTC) has said it will charge a fee of Rs 12 plus taxes on every ticket booked from service providers.

Sensex snaps two week winning streak, slips 45 points
Posted on 21st July 2018
The benchmark Sensex snapped its two week winning streaks to register small losses by 45.26 points to conclude at 36,496.37, while the broader Nifty managed to maintain the key 11,000-level to close at 11,010.20, losing a marginal 8.70 points.

Caution ruled roost during the week trade, weighed down by economic woes set-off by the surging June Wholesale price (WPI) inflation which shot-up to a four-year high to 5.77 per cent increased the chances of RBI hiking rates in its August meet.


New Rs 100 note poses fresh headaches for ATM operators
Posted on 21st July 2018
The Reserve Bank of India’s (RBI) announcement launching a new series of 100-rupee denomination notes has been greeted with trepidation by the major companies engaged in the manufacture and supply of Automatic Teller Machines (ATMs) in the country.

Like the new post-demonetisation Rs 2,000, Rs 500, Rs 200 and the new Rs 50 notes and Rs 10 notes, even the new lavender-coloured Rs 100 is a tad smaller in size compared to the blue-coloured Rs 100 notes currently in circulation.


Facebook suspends US-based analytics firm over data concerns
Posted on 21st July 2018
After the Cambridge Analytica data scandal, Facebook has now suspended Boston-based data analytics company Crimson Hexagon over concerns that it harvested users’ data.

According to a report in The Wall Street Journal late on Friday, the social media giant was investigating whether the analytics firm’s “contracts with the US government, a Russian non-profit organisation tied to the Kremlin and the Turkish government violate the platform’s policies”.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Sebi sticks to definition of 'control' for M&As
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Sebi sticks to definition of 'control' for M&As

Most Read News

Life insurers' premium growth doubles in first quarter, says Irdai

Amazon Prime day sale: Samsung Galaxy Note 8 at Rs 41,990 and other deals you need to know

Vedanta offers Rs 2,500 cr for GMR’s Chhattisgarh thermal power plant

LIC board gives approval to acquire 51% stake in debt-ridden IDBI Bank

Ashok Leyland slumps 14% on demand worries

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2018 IndiaCatalog.com
    All Rights Reserved
Privacy Statement