SEBI has amended the Takeover Regulations to permit creeping acquisitions vide a notification dated 30th October 2008. I had highlighted here the Press Release that announced the decision of SEBI for this purpose. Following some queries by readers, and also certain points by Mr. Umakanth, more specifically on a concern expressed by me on whether increase in percentage holding arising out of buyback of shares could per se and automatically the Takeover Regulations as SEBI seemed to have taken for granted, I reproduced here an article I had written earier this year for a professional journal, BCAJ, earlier this year on this issue.
Now that the amendment has been made, it is worth discussing in more detail and I will give some of my views later tonight or by tomorrow. I will try to incorporate the points and suggestions (and very learned differing opinions too) of readers in this piece to follow.
- Jayant Thakur, CA