The Securities and Exchange Board of India in its gazette notification dated 16th June 2020 has published the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2020.
The Amendment is brought under regulation 3 in which it allows shareholder owning 25% or more of the shares or voting rights in a company to increase his shareholding by up to 10% in a year, only in respect of acquisition by a promoter pursuant to preferential issue of equity shares by the target company.
The threshold has been raised from 5% to 10%, for preferential issue on financial year 2020-21.
Further SEBI has relaxed the provision for voluntary open offer, in which a shareholder holding 25% or more of shares or voting rights shall make a voluntary open offer subject to their aggregate shareholding after completion of the open offer not exceeding the maximum permissible non-public shareholding.
This condition has now been relaxed till March 31, 2021.
Click here to read the notification.
