Sebi announces takeover norms for companies like Satyam

SEBI vide a notification dated 13th February, 2009 has amended the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 and has made the following changes:

· SEBI has stated that Chapter III of the Takeover Code will be relaxed by the Board in certain cases where the following conditions are satisfied, on an application made by the target company. (1) The Central Government or State Government or any other regulatory authority has removed the board of directors of the target company and has appointed other persons as directors. (2) Such directors have devised a plan which provides for transparent, open, and competitive process for continued operation of the target company in the interests of all stakeholders in the target company and the conditions and requirements of the competitive process are reasonable and fair.

· SEBI has also stated that no public announcement for a competitive bid should be made after an acquirer has already made the public announcement pursuant to relaxation granted by the Board in terms of regulation 29A.