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New takeover code from March: SEBI

The Securities and Exchange Board of India (SEBI) will introduce a new takeover code in the last month of this fiscal offering more benefits to investors and companies, SEBI chairman D R Mehta said.

Mehta said that SEBI would scrutinise the draft proposal and give a final shape to the revised code in the last week of February.

Emphasising that takeovers were essential for corporate restructuring and shaking up complacency, Mehta said it would also enable the investors to get maximum price.

Since the beginning of takeover regulation investors had gained more than Rs 45 billion by cashing in on the difference in offer and market prices, he said.

Later replying to a question by reporters the SEBI chairman allayed the fear of any adverse effect of market volatility on the secondary market. He assured that while the cost of trading was coming down there was a cover of about Rs 90 billion to keep the secondary markets safe. He observed that volatility was a common phenomenon and it was less in the Indian capital market than in the Nasdaq.

UNI

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