Sebi mulls stricter norms for M&As

MOVE TO PROTECT SMALLER INVESTORS

- JAYSHREE P UPADHYAY

THE SECURITIES AND Exchange Board of India (Sebi) plans to amend its merger and acquisition (M&A) rules, including barring acquiring companies from offering higher prices or additional compensation to major shareholders, said two sources with direct knowledge of the matter.

The reforms aim to level the playing field for smaller and retail investors and expedite deals, the sources said.

The proposed changes have not been previously reported.

Sebi Chairman Tuhin Kanta Pandey, speaking to reporters after a board meet on Wednesday, confirmed efforts to revamp the so-called "takeover code" regulations, stating that proposed changes would be put out for public feedback. He did not disclose specific details.

There was no immediate response to an email to Sebi seeking details on the reforms.