New Delhi: Markets regulator SEBI has barred 'fugitive economic offender' from making an open offer or a competing offer for acquiring shares in a company.
The move is expected to help in preventing such offender from taking control of a listed company.
"No person who is a fugitive economic offender shall make a public announcement of an open offer or make a competing offer for acquiring shares or enter into any transaction, either directly or indirectly, for acquiring any shares or voting rights or control of a target company," SEBI said in a notification dated 11 September.
In the event of failure of the delisting offer, SEBI has issued a framework for acquirers to fulfil the open offer obligations.
The acquirer, through the manager to the open offer, will have to within five working days from the date of the announcement need to file with the board a draft offer in this regard.
This will be applicable provided that the "offer price shall stand enhanced by an amount equal to a sum determined at the rate of 10 percent per annum for the period between the scheduled date of payment of consideration to the shareholders and the actual date of payment of consideration to the shareholders".
The regulator has amended SEBI (Subtantial Acqusition of Shares and Takeovers) norms in this regard.
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Updated Date: Sep 18, 2018 07:22:11 IST