SEBI's new takeover code

The Board meeting of SEBI held recently announced the new takeover code based on the report of the Takeover Regulations Advisory Commi­ttee (TRAC) submitted ear­lier in July 2010. The TRAC reco­mmendations accepted in­cl­u­de: The minimum offer size shall be increased to 26 per cent of the total issued capital from the existing 20 per cent of the total issued capital; Initial trigger threshold increased to 25 per cent from the existing 15 per cent; There shall be no separate provision for non-com­pete fees and all shareholders shall be given exit at the same price; In cases of competitive offers, the successful bidder can acquire shares of other bidder(s) after the offer period without attracting open offer obliga­t­ions; and A recommendation on the offer by the Board of Target Company has been made mandatory. The Board however, did not accept the recommendation of TRAC to provide for delisting pursu­ant to an offer and proportio­nate acceptance.