Markets regulator Sebi has barred 'fugitive economic offender' from making an open offer or a competing offer for acquiring shares in a company.
The move is expected to help in preventing such offender from taking control of a listed company.
"No person who is a fugitive economic offender shall make a public announcement of an open offer or make a competing offer for acquiring shares or enter into any transaction, either directly or indirectly, for acquiring any shares or voting rights or control of a target company," Sebi said in a notification dated September 11.
In the event of failure of the delisting offer, Sebi has issued a framework for acquirers to fulfil the open offer obligations.
The acquirer, through the manager to the open offer, will have to within five working days from the date of the announcement need to file with the board a draft offer in this regard.
This will be applicable provided that the "offer price shall stand enhanced by an amount equal to a sum determined at the rate of 10 per cent per annum for the period between the scheduled date of payment of consideration to the shareholders and the actual date of payment of consideration to the shareholders".
The regulator has amended Sebi (Subtantial Acqusition of Shares and Takeovers) norms in this regard.
First Published: Sept 18, 2018 5:33 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM