Capital market regulator SEBI has started the review process of the implementation of the takeover code regulations.
“When we implemented the takeover code one and half year ago we told ourselves and the outside world that it will be reviewed after one year. And since that one year period is over we have again started re-looking at the implementation of the revised takeover regulations,” said U.K. Sinha, Chairman, SEBI, speaking at the Financial Planning Congress 2012-13 organised by the Financial Planning Standards Board India.
He further added, “We have received feedback and they will be given due consideration. Hopefully in the next couple of months or in the near future we will be making further progress.”
The takeover code regulations came into existence in October 2011.
Protecting investors
On Tuesday (January 15), the NSE put out a notice on its website announcing its intention to discontinue with trading in Deccan Chronicle Holdings. Though the SEBI Chief declined to comment on individual companies, he said that the regulator’s main aim was to protect the interest of the small investors of companies who have been suspended from trading.
“It is a very difficult situation when a company's trading is suspended because that is an extreme state and obviously it is being done keeping in mind that if trading is allowed to be continued, then there will be further harm done to the small investor. So in that background, how long this suspension should continue, what further measures should be taken, it will depend upon different cases. So, it can be a case-to-case approach rather than having one general approach,” he said.
Unhappy with tenders
On the recent withdrawal of the tenders offered by SEBI for whetting the documents provided by the investors of Sahara, he said that the regulator was unhappy with the quality of the tender offers received.
In December last year, SEBI had put out notices in newspapers calling for tenders for the processing of the documents of the Sahara case.
Nearly three crores investors have submitted 300 crore documents for SEBI.
Last year, Sahara was directed by the Supreme Court to refund close to Rs 24,000 crore which the company had raised from about three crore investors. Sahara was then asked to deposit the money with SEBI, who in turn, was asked to refund the amount to the investors.