Saturday, February 14, 2015

SEBI to consult CAs, Merchant Bankers on takeover valuations

To ensure fair treatment of minority investors during takeovers of listed companies, regulator Securities & Exchange Board of India (SEBI) has decided to seek help of Chartered Accountants and Merchant Bankers for an independent valuation of the price offered to small shareholders by new promoters.

For the purpose, SEBI would empanel eligible Chartered Accountant firms to take up work relating to valuation of shares under its Takeover Regulations, that involves the entities buying a substantial stake in a listed company to make an open offer for minority shareholders as well.

These CAs would also be consulted on valuation of assets in relation to schemes of arrangement undertaken by the listed companies, SEBI said in a public notice while inviting applications from
eligible CAs.

Besides, SEBI might also get valuation of the shares done by an independent merchant banker, other than the one appointed by the concerned company. These valuations would be undertaken by SEBI while processing the draft schemes of arrangement filed with it by the companies.


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