Market regulator Sebi on Monday said that new norms for takeover of companies, as also for ownership and governance issues of stock exchanges, would take some time as they need more deliberations, including by the government.
After a board meeting, Chairman Mr C B Bhave told reporters that decision on the new Takeover Code has been deferred.
The Takeover Code relates to changes in a host of regulations governing the merger and acquisitions of listed companies.
Asked about the Jalan Committee report, which has recommended sweeping changes in the way stock exchanges and other market infrastructure institutions are owned and run, Mr Bhave said the matter was not discussed at all.
While the Sebi is awaiting some more clarity from the government on the Takeover Code, the regulator is still collating the feedback received on Jalan panel recommendations, he said.
The Takeover Code has been awaiting a clearance for many months now and has been discussed in at least three meetings of the Sebi board, which has representations from the government also, so far without any final decision.
Whenever the government completed its consultations, Sebi will take decision on Takeover Code, Mr Bhave added.
While Mr Bhave did not specify any reasons for delay in decisions on these two major issues, sources close to the development said that the government is of the view that these matters could be best taken up by the next Sebi chief.
Mr Bhave’s three-year term as Sebi chief ends on February 17 and he would be succeeded by Mr U K Sinha, chief of fund house UTI AMC and Chairman of mutual fund industry body Amfi.
Sebi had begun the process of finalising its guidelines on the way bourses are owned and do business, based on the feedback received on recommendations made by the Jalan committee on this matter, in January it self.
Sebi had put forth the recommendations made by the Bimal Jalan Committee for review of ownership and governance norms for market infrastructure institutions on November 23, 2010 and had invited public comments on the same till December 31.
The committee suggested sweeping changes in the way stock exchanges are owned and function and its proposals include capping their profitability and not allowing them to get listed to safeguard their front-line regulatory role.
The proposals generated intense debate and opposition has been raised to various proposals including non-listing of bourses and cap on profitability, terming them as measures that would push the investors away.