Monday, December 15, 2014

SEBI tightens Delisting and Insider Trading Regulations

Delisting

  • Delisting and buyback offer should be done through exchanges
  • At least 25% of the total number of public shareholders will have to be sought by Cos
  • Offer price will be based on an average of promoters' offer price and investors' tender price with a threshold of 90% of equity
  • Promoter cannot make a delisting offer if group entity has sold shares within 6 months of the board meeting to decide delisting
  • Option to the acquirer to delist directly through Delisting Regulations pursuant to triggering takeover regulations provided.
Insider Trading

  • All persons and their immediate relatives with a contractual, fiduciary or employment relationship with the company, with access to unpublished price sensitive-information, included as insider
  • Insider have to disclose trading plan on stock exchanges
  • Directors and management prohibited from F&O trading
  • The onus of proving that they were not in possession of the price-sensitive information has been put on them.
Mutual Funds
  • AMCs, yet to meet with net-worth norm of Rs 50 crores, can launch only two schemes a year.

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