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The government announced on July 18 that it had issued an ordinance to give Sebi more powers against illegal collective investment schemes and to curb insider trading. The release went on to say that
A. Sebi would have powers to regulate any collective investment schemes with a corpus of Rs 100 crore or more,
B. Sebi could seek information, including call records, from anybody in connection with its investigations, and lastly
The Securities and Exchange Board of India, the capital market regulator, has made key changes to the existing takeover regulations. Sebi was acting upon the report of the Takeover Regulations Advisory Committee, which had submitted its recommendations in July 2010. In the interim, there was a change of guard at Sebi, which may have delayed the decision-making process.
Here are the main changes and impact:
The Sebi board met today and took decisions on some key changes to the takeover regulations. The notifications about the changes will be made in due course.
Pfizer Investment Netherlands BV, a subsidiary of Pfizer Inc, will pay Rs 675 a share to acquire a 33.77% stake in Pfizer India. At this price, the total consideration is Rs 680 crore and Pfizer’s stake will go up to 75%. It will take regulatory approvals for the open offer. Pfizer will have to revise its offer price for the open offer to succeed, as the current market price is already Rs 685. It would have known it may not get many buyers at this price. But it expects the offer to open only in June 2009, so it has used the prevailing price to arrive at a floor. Continue Reading →