Rohit Kamath, Vivekanand Education Society's College of Law
Introduction
For many years, M&A transactions in India have been governed by the age-old takeover rules. During this time, much has changed in the corporate world. The SEBI appears to have realised that these rules need to be updated to keep up with the ever-changing global scenario. As a result, the SEBI announced the new takeover rules earlier this year. In India, the law governing takeovers of publicly traded companies has been in effect for more than nine years. The Securities and Exchange Board of India (SEBI) created it, which is known as the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. (Takeover Code or Takeover Regulations).
The article highlights the new Takeover Code, 2011, which adheres to the framework and principles of the Takeover Code, 1997, but with significant changes. This article provides an overview of the Takeover Code, 2011 and discusses some of the most significant amendments.
When a company or individual offers the shareholders of another to sell their shares at predetermined prices, this is known as a takeover or a tender offer. It may be friendly if the target companies board accepts, or it may be hostile if the board is against the acquisition, but the acquiring nevertheless makes a direct offer to the shareholders.
