In a notification on August 14, the markets regulatory amended the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
The relaxation in norms applies to the acquisition of shares by lenders pursuant to the conversion of their debt as part of debt restructuring as per Reserve Bank of India's (RBI) guidelines.
Investors who acquire major stakes in a company from lenders who had acquired stakes in distressed companies will be exempted from making the mandatory open offer as it would reduce funds available for investment in the company.
However, the relaxations are subject to certain conditions like approval by the shareholders of the companies by special resolution and lock-in of their shareholding for a minimum period of three years
Further, the acquisitions are pursuant to resolution under the Insolvency and Bankruptcy Code, 2016.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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