Withdrawal of open offer under the SEBI takeover code

Abstract

SEBI is the regulatory body for the securities and commodities market in India. The object and purpose of enacting the SEBI Act, and formulating SEBI was to protect the interests of investors in securities and to promote the orderly development of the securities market. It also has the powers to enact rules and regulations, conferred by the SEBI Act, 1992. By virtue of this power, it has enacted a number of legislations, including the Takeover Code, 2011. This code is titled as ‘Substantial Acquisition of Shares and Takeovers (SAST) Regulations’, and it lays down the regulatory framework for M&As in India. The primary objectives of The Takeover Code are: (Achuthan, 2010) • To protect the interests of investors in securities and the securities market. • To balance the conflicting objectives and interests of various stakeholders. • To provide each shareholder an opportunity to exit his investment in the target company when a substantial acquisition of shares in, or takeover of a target company takes place. • To provide acquirers with a transparent legal framework to acquire shares in or control of the target company. • To ensure that the affairs of the target company are conducted in the ordinary course when a target company is subject matter of an open offer. • To ensure that fair and accurate disclosure of all material information is made to various stakeholders to enable them to take informed decisions.