The Hindu Business Line : Takeover code to be revised: Damodaran

The SEBI Chairman, Mr M. Damodaran, said on Saturday that amendments to the takeover code would be taken up in the next board meeting of the regulator. "After considering the representations of the apex chambers, the process of revision has already commenced and I hope to take it up in the next board meeting scheduled for the end of May," he said.

Industry has been opposing the present reduction in the ceiling on acquisition from 75 per cent to 55 per cent through market purchase and preferential allotment, stating that it is unwarranted and would cause problems for promoters. They have been seeking restoration of the 75 per cent limit.

While refraining from disclosing how far the acquisition limit would be raised, Mr Damodaran told reporters at the sidelines of a FICCI conference on Judicio-Legal Reforms that, "All I can say is that we have an open mind to the issues raised and the revision would result in a framework, which is more practical."

On Clause 49 of the Listing Agreement, the SEBI Chairman, said, "We have eight months to find our way out of seemingly conflicting problems." He, however, felt that getting the requisite number of competent and truly independent directors should not be a problem.

When asked whether Government directors on boards of companies would be treated as independent directors, Mr Damodaran said that in companies where the Government has a majority stake, Government directors would not qualify as independent directors.

The SEBI Chairman added that he favours simpler regulations where compliance would be easier. "We will scrap a number of redundant regulations. Some of the regulations will be integrated with others and written in a simple language," he said.Mr Damodaran said plans are afoot to move on to a modern T+1 (transaction date plus one) settlement system for shares, once the banking sector is ready for it.

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Takeover code to be revised: Damodaran