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SEBI's 3 Big Changes!

Published on Wed, Nov 19,2014 | 21:27, Updated at Wed, Nov 19 at 21:27Source : Moneycontrol.com 

SEBI Announces 3 Big Changes!

By: Menaka Doshi, Executive Editor, CNBC TV18

SEBI’s Board today decided on a slew of important matters today. It approved new prohibition of insider trading regulations, new de-listing norms and other things…

You can access the SEBI announcements here - http://www.sebi.gov.in/sebiweb/home/detail/29593/yes/PR-SEBI-Board-Meeting

A quick take of the big changes is available here - https://storify.com/thefirmupdate/sebireformspush

And here, according to me, are the 3 BIGGEST CHANGES ANNOUNCED TODAY

All de-listing, buyback & takeover offers to now happen on-exchange
- This may improve participation in tender offers etc… as the capital gains tax treatment has been equalised with ordinary share transactions!

New de-listing norms allow an acquirer to de-list via a takeover offer
- The Takeover Code requires a promoter/acquirer to reduce his stake to below 75% incase it exceeds that threshold in the course of a tender offer. And then wait for a year in case the acquirer is desirous of taking the company public. That is just plain silly. Finally SEBI realises that too and has permitted that an acquirer can de-list via a takeover offer.

And new anti-insider trading norms allow for due diligence and access to unpublished price sensitive information…
- This comes as good news for strategic acquirers, who have often wanted to access unpublished price sensitive information before deciding on a takeover or substantial acquisition. Conditions apply but useful move nonetheless…

More insight on the big changes to the prohibition of insider trading regulations and the de-listing norms is available in accompanying articles

 
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