The Hindu Business Line : SEBI to review `takeover code'

THE Securities and Exchange Board of India (SEBI) is expected to take a re-look at the provisions of the `takeover code' in view of the recent developments involving Larsen and Toubro and Grasim, and ACC and Gujarat Ambuja cases. The issue is whether the code define `control' even before the acquirer reaches 15 per cent limit

The re-look gains significance as the current takeover code does not prescribe exactly what control means. This was also recently stated by the Securities and Appellate Tribunal (SAT) in an order directing SEBI to re-investigate the acquisition of 14.7 per cent of ACC by Gujarat Ambuja from Tatas.

A senior SEBI official said takeover code has been recently amended. But " following the recent developments, we may look at the issue of control under the takeover code". However, he said this may take some time.

Currently, SEBI is looking at whether Aditya Birla group company's Grasim gained control at the time of acquiring 10.6 per cent in L&T from the Reliance group. The market regulator is also re-investigating whether Gujarat Ambuja Cement acquired control of ACC following the SAT directive.

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