Securities and Exchange Board of India (SEBI) issued a significant circular regarding the filing process for reports under Regulation 10(7) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This new initiative is aimed at simplifying and improving the process of submitting reports related to acquisitions and increases in voting rights, which are subject to specific exemptions outlined in Regulation 10.
The Current Process and Need for Change
Under Regulation 10(7) of the Takeover Regulations, any acquirer who benefits from the exemptions specified in Regulation 10 is required to submit a report to SEBI. These reports are currently filed by email to SEBI’s designated address (cfddcr@sebi.gov.in). However, the existing email-based system has raised challenges in terms of efficiency, tracking, and ease of submission. To address these issues and enhance the overall compliance experience, SEBI has decided to move towards an online filing system.
The New Online Filing System
Starting from the issuance of the circular, SEBI will facilitate the submission of these reports through its SEBI Intermediary Portal (SI Portal), which can be accessed at https://siportal.sebi.gov.in. This online platform is designed to simplify the filing process, reduce paperwork, and improve the overall efficiency of processing these reports. Initially, the online filing system will apply only to two specific exemptions under Regulation 10(1)(a)(i) and Regulation 10(1)(a)(ii) of the Takeover Regulations.
Key Features and Timeline for the Transition
Dual Filing System (Parallel Run):
In the first phase of implementation, companies will continue to have the option to file reports both via email and through the SI Portal. This dual filing system will be in place until May 14, 2025, allowing stakeholders a grace period to transition to the new system.
Mandatory Online Filing (Post-May 14, 2025):
From May 15, 2025, onwards, filing through the SI Portal will become the only accepted method for submitting reports under Regulation 10(7) for the specified exemptions. This shift to a fully online system will ensure a more streamlined and transparent process for all stakeholders involved.
Fee Payment Integration:
Another important feature of the new system is the integration of fee payments within the SI Portal. As of the circular's release, payments for the two reports covered under the new system will no longer be processed via the SEBI website’s payment link (https://eservices.sebi.gov.in/paymentmodule). Instead, all payments must be made directly through the SI Portal, and the filing process will only be considered complete once the fee payment is made through this platform.
Portal Helpline:
To assist stakeholders in navigating the new online filing system, SEBI has established a helpline. Any queries or concerns related to filing reports or fee payments can be directed to the SI Portal helpdesk at +9122-2644-9364 or via email at portalhelp@sebi.gov.in.Benefits of the New System
The introduction of the online filing system through the SI Portal aims to provide several benefits:
Efficiency: The online system streamlines the entire filing process, eliminating the need for manual intervention, reducing errors, and speeding up the submission and processing time.
Transparency: With the move to a digital platform, stakeholders will be able to track the status of their submissions and payments more easily, promoting transparency in the filing process.
Ease of Use: The SI Portal will provide a user-friendly interface that makes it easier for companies to comply with the filing requirements.
Security: The online system offers enhanced security for sensitive data, reducing the risk of manual errors or data breaches that may occur with email-based submissions.Conclusion
SEBI’s transition to an online filing system for reports under Regulation 10(7) of the Takeover Regulations marks a significant step forward in modernizing the compliance process for the securities market. This initiative is designed to improve efficiency, reduce paperwork, and provide greater transparency for both listed entities and investors. By gradually phasing out the traditional email submission process in favor of the SI Portal, SEBI is reinforcing its commitment to improving market operations and ensuring that stakeholders can meet regulatory requirements with ease.
