Corporate Updates – 30-05-2016


SEBI has made amendments to the existing Takeover Regulations and issued the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Second Amendment) Regulations, 2016 which shall come into force on the date of their publication in the Official Gazette. Through this amendment definition "willful defaulter" of has been be inserted, which means any person who is categorized as a willful defaulter by any bank or financial institution or consortium thereof, in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India and includes any person whose director, promote or partner is categorized as such. Further the restriction has been imposed, that no person who is a willful defaulter shall make a public announcement of an open offer for acquiring shares or enter into any transaction that would attract the obligation to make a public announcement of an open offer for acquiring shares under these regulations.


In terms of the Foreign Exchange (Compounding Proceedings) Rules, 2000, to ensure more transparency and greater disclosure, it has now been decided to disseminate the information pertaining to compounding orders, and to host the compounding orders passed on or after June 1, 2016 on the Bank’s website and shall be updated at monthly intervals. Further, the amount imposed is calculated based on guidance note. It may, however, be noted that the guidance note is meant only for the purpose of broadly indicating the basis on which the amount to be imposed is derived by the compounding authorities in Reserve Bank of India. The actual amount imposed may sometimes vary, depending on the circumstances of the case taking into account the factors prescribed.

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