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Our Bureau

Mumbai, Oct. 29 Promoters can increase their stake up to 75 per cent through creeping acquisition, instead of 55 per cent earlier.

However, they will have to buy shares through normal market purchase and not through bulk, block or negotiated deals.

SEBI on Monday relaxed the creeping acquisition norms — a move seen by market men as another step to improve investor sentiment.

On Monday, Sensex fell below 8,000, falling by over 1,000 points intra-day before recovering to 8,509.

Through a creeping acquisition, the promoters of a company can increase their stake in the company by buying up to five per cent of the company’s equity annually.

SEBI also said that promoters needn’t seek its permission if their holdings in the company were to increase by five per cent during buyback of shares.

The Sensex has shed more than 20 per cent in the last week. Market men said that they expect this move by SEBI to boost confidence of investors.

More Stories on : Stocks | Regulatory Bodies & Rulings | Mergers & Acquisitions

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