Takeover code: SEBI board to consider Achuthan committee report on July 28

K. R. Srivats New Delhi | Updated on July 20, 2011

The SEBI board will meet on July 28 to consider the much talked about Achuthan committee report on changes to the takeover code.

This will be the first time that the SEBI board will discuss the Achuthan committee report, which was submitted to the capital market regulator in July last year.

The report forms part of the agenda of the upcoming SEBI board meeting, on July 28, official sources confirmed.

The SEBI board was earlier slated to meet on June 30 and discuss the Achuthan report among other issues. But the board meeting did not take place on June 30 and was postponed to a later date.

Two recommendations of the Achuthan committee report that came in for much debate were the 100 per cent open offer size rule and the abolition of non-compete fees separately paid by an acquirer to the promoter of a target company.

SEBI had recently said that the maximum feedback had been received by it on these two issues.

The Achuthan committee report had also recommended that the initial acquisition threshold for a mandatory open offer be raised to 25 per cent of voting capital of the target company.

India Inc is of the view that the concept of ‘non-compete’ fees should not be done away with.

Published on July 20, 2011

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