India to revamp M&A rules to protect retail investors, expedite deals

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

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A woman walks past the Sebi headquarters in Mumbai. Sebi intends to cut the permitted time to complete an open offer to 30 days from the current two months, with faster mechanisms for regulatory clearance. — REUTERS

(REUTERS)

The reforms aim to level the playing field for smaller and retail investors and expedite deals, the sources said, requesting anonymity as they were not authorised to speak to the media.

The proposed changes have not been previously reported.

Sebi Chairman Tuhin Kanta Pandey, speaking to reporters after a board meeting 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.