SEBI has amended the SEBI (SAST) Regulations 2011 to permit acquisition beyond five per cent up to ten per cent of the voting rights in the target company for the financial year 2020-21 in respect of acquisition by a promoter by way of a preferential issue of equity shares by the target company. A proviso to this effect has been inserted in Regulation 3(2).

Further, in respect of a Voluntary offer , SEBI has permitted relaxation of the first proviso to sub-regulation (1) till 31 March 2021. Sub-regulation (1) permits making of a voluntary open offer for acquiring shares provided the aggregate shareholding of the acquirer and PACs does not exceed the maximum permissibe non-pubic shareholding. The first proviso, however, bars an acquirer or any person acting in concert with him who has acquired shares of the target company in the preceding fifty two weeks without attracting the obligation to make a public announcement of an open offer, from voluntarily make a public announcement of an open offer.

To refer to the SEBI (SAST) (Amendment) Regulations, 2020 click here.

Amendment to SEBI (ICDR) Regulations 2018

SEBI has amended regulation 172 (3) of the ICDR Regulations to reduce the time period for making any subsequent qualified institutions placement to two weeks (earlier six months) from the date of the prior qualified institutions placement .

To refer to the SEBI (ICDR) (Amendment) Regulations 2020, click here.