Home India Securities and Exchange Board of India exercise of the powers conferred under section 30 of the Sec...
Date: 2020-06-16 Category: Extra Ordinary State: Union Government Country: India

exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act,

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This notification from the Securities and Exchange Board of India (SEBI) announces the Substantial Acquisition of Shares and Takeovers Amendment Regulations, 2020. It amends the 2011 regulations, providing relaxations for share acquisitions, specifically for promoters via preferential issues. The amendment regarding regulation 6 is effective until March 31, 2021. Key Points / Main Content: Amendments to 2011 Regulations: * These regulations are called the Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Amendment Regulations, 2020. * The regulations come into force on the date of their publication in the Official Gazette (June 16, 2020). Regulation 3 Amendment: * A new proviso is inserted in subregulation 2, before the existing provisos. * Acquisition beyond five per cent but up to ten per cent of voting rights is permitted for the financial year 2020-21 only. * This is applicable only for acquisitions by a promoter via preferential issue of equity shares by the target company. Regulation 6 Amendment: * In subregulation 1, after the first proviso, language is added to grant relaxation until March 31, 2021. Impact Analysis: Promoters: * Impact: Benefit from a temporary relaxation in acquisition limits, allowing increased shareholding through preferential issues up to 10% during the financial year 2020-21. * Action Required: Utilize the relaxed acquisition limits within the specified timeframe and in accordance with the conditions of preferential issues. Target Companies: * Impact: May experience changes in shareholding patterns due to promoters increasing their stake. * Action Required: Facilitate preferential issues in compliance with the amended regulations. SEBI: * Impact: Oversees the implementation of these amended regulations. * Action Required: Monitor compliance with the new provisions and enforce the regulations as necessary.

Key Entities Referenced

Securities and Exchange Board of India (SEBI): The regulatory body responsible for securities markets in India. Securities and Exchange Board of India Act, 1992: The Act of Parliament that established the Securities and Exchange Board of India and defines its powers and functions. Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Regulations, 2011: The principal regulations governing substantial acquisition of shares and takeovers in India, as amended. Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Amendment Regulations, 2020: The amendment regulations to the 2011 regulations, which are the main subject of this notification. New Delhi: The city where the notification was published. Mumbai, Maharashtra: The location of the Securities and Exchange Board of India. Ajay Tyagi: The Chairman of the Securities and Exchange Board of India at the time of notification. Official Gazette: The official government publication where the regulations are published.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. NO. D. L.-33004/99 सी.जी.-एम.एचxx.x-अGI.D-1H6x0xx6 2020-219958 CG-MHx-xEx-G1I6D0E6x2x0x 20-219958 असाधारण EXTRAORDINARY भाग 3—खण् ड 4 PART III—Section IV प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 199] िई कदल्ली, मगं लिार, ििू 16, 2020/ज्य ष्े ठ 26, 1942 No. 199] NEW DELHI, TUESDAY, JUNE 16, 2020/JYAISHTHA 26, 1942 भारतीय प्रजतभजू त और जिजिमय बोडड अजधसचू िा मुम्बई, 16 िूि, 2020 भारतीय प्रजतभजू त और जिजिमय बोडड (िये रों का पयाप्तड अििड और अजधग्रहण) (सिं ोधि) जिजियम, 2020 स.ंसबे ी/एलएडी-एि आरओ/िीएि/2020/14/.— बोड,ड भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम, 1992 (1992 का 15) की धारा 30 के तहत प्रदत्त िजियों का प्रयोग करते हुए एतद्द्द्वारा भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अििड और अजधग्रहण) जिजियम, 2011 का और संिोधि करि े के जलए जिम् िजलजखत जिजियम बिाता ह,ै अर्ातड :् - 1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड (िये रों का पयाडप्त अिडि और अजधग्रहण) (संिोधि) जिजियम, 2020 कहा िा सकेगा । 2. िे रािपत्र म ें उिके प्रकािि की तारीख को प्रिृत्त (लाग)ू होंगे । 3. भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) जिजियम, 2011 म,ें - I. जिजियम 3 में, उप-जिजियम (2) म,ें मौिूदा परंतुकों स े पहल े जिम् िजलजखत िया परंतुक अतं ःस्ट्र्ाजपत ककया िाएगा, अर्ाडत,् - 2583 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. IV] “परंत ु यह कक जित्तीय िर्ड 2020-21 हते ु लजित कंपिी (टागेट कंपिी) में पााँच प्रजतित से अजधक ककंतु दस प्रजतित तक के मताजधकारों के अििड (एक्विज़िशन) की अिुमजत केिल लजित कंपिी द्वारा लाए िाि े िाले इकिटी िेयरों के अजधमािी जिगडम (प्रेफरेंजियल इश्यू) के अिुसरण में संप्रितडक (प्रोमोटर) द्वारा ककए िािे िाल ेअििड के संबंध में ही होगी ।” II. जिजियम 6 में, उप-जिजियम (1) में, पहले परंतुक के पश्चात् जिम्नजलजखत अंतःस्ट्र्ाजपत ककया िाएगा, अर्ाडत,् - “पहल े परंतुक स े31 माचड, 2021 तक छूट प्रदाि की िाती ह ै।” अिय त्यागी, अध्यि [foKkiu&III/4/vlk+/55/2020-21] पाद टटप्पण: 1. भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अििड और अजधग्रहण) जिजियम, 2011, स.ं एल.ए.डी.- एि.आर.ओ./िी.एि./2011-12/24/30181, 23 जसतम्बर 2011 को भारत के रािपत्र म ें प्रकाजित हुए र् े। 2. जिजियम तत्प श् चात: क. 26 माच,ड 2013 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (संशोधन) जिजियम, 2013, सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2012-13/36/7368, द्वारा ख. 8 अक्ट ूबर, 2013 को भारतीय प्रजतभूजत और जिजिमय बोड ड {संस्थागत व्यापारिक (ट्रेड ंग) प्लेटफार् म पि जिजनर्दष्टम प्रजतभूजतयों की सूचीबद्धता} जिजियम, 2013, सं. एल.ए.डी.- एि.आर.ओ./िी.एि./2013-14/28/6720, द्वारा ग. 23 मई, 2014 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का संदाय) (संिोधि) जिजियम, 2014, सं. एल.ए.डी.-एि.आर.ओ./िी.एि./2014-15/03/1089, द्वारा घ. 24 र्ाच,म 2015 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (संशोधन) जिजियम, 2015, सं. एल.ए.डी.-एि.आर.ओ/िी.एि./2014-15/28/542, द्वारा ङ. 5 र्ई, 2015 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (दसू िा संशोधन) जिजियम, 2015, स.ं सेबी.एि.आर.ओ./ ओ.आई.ए.इ./जी.एन./2015-16/004, द्वारा च. 14 अगस्त, 2015 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (तीसिा संशोधन) जिजियम, 2015, स.ं सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2015- 16/009, द्वारा छ. 22 क्वदसम्बि, 2015 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अििड और अजधग्रहण) (चौथा संशोधन) जिजियम, 2015, सं. सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2015- 16/026, द्वारा[भाग III—खण् ड IV] भारत का रािपत्र : असाधारण 3 ि. 17 फिििी, 2016 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (संशोधन) जिजियम, 2016, स.ं सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2015-16/035, द्वारा झ. 25 र्ई, 2016 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (दसू िा संशोधन) जिजियम, 2016, स.ं सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2016-17/002, द्वारा ञ. 6 माच,ड 2017 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का भुगताि और भुगताि का माध्यम) (संिोधि) जिजियम, 2017, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016- 17/037 (तारीख 29 माच,ड 2017 की अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016- 17/038 के सार् पटठत) द्वारा ट. 14 अगस्त, 2017 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयरों का पयाडप्त अििड और अजधग्रहण) (संशोधन) जिजियम, 2017, स.ं सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2017-18/015, द्वारा ठ. 1 जून, 2018 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िये रों का पयाडप्त अिडि और अजधग्रहण) (संशोधन) जिजियम, 2018, सं. सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2018/20, द्वारा ड. 11 जसतम्बि, 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (दसू िा संशोधन) जिजियम, 2018, स.ं सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2018/33, द्वारा ढ. 31 क्वदसम्बि, 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अििड और अजधग्रहण) (तीसिा संशोधन) जिजियम, 2018, स.ं सेबी/एलए. ी.एि.आर.ओ./जी.एन./2018/55, द्वारा ण. 29 माच,ड 2019 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (संशोधन) जिजियम, 2019, सं. सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2019/06, द्वारा त. 29 िुलाई, 2019 को भारतीय प्रजतभूजत और जिजिमय बोडड (िेयरों का पयाडप्त अिडि और अजधग्रहण) (दसू िा संशोधन) जिजियम, 2019, स.ं सेबी/एल.ए. ी.-एि.आर.ओ./जी.एन./2019/27, द्वारा र्. 17 अप्रैल, 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संशोधन) जिजियम, 2020, सं. सेबी/एल.ए. ी.-एिआरओ/जीएन/2020/10, द्वारा संिोजधत हुए र्े । SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 16th June, 2020 SECURITIES AND EXCHANGE BOARD OF INDIA (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) (AMENDMENT) REGULATIONS, 2020 No. SEBI/LAD-NRO/GN/2020/14.— exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. IV] amend the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, namely:- 1. These regulations may be called the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2020. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011,- I. In regulation 3, in sub-regulation (2), the following new proviso shall be inserted before the existing provisos, namely – “Provided that the acquisition beyond five per cent but upto ten per cent of the voting rights in the target company shall be permitted for the financial year 2020-21 only in respect of acquisition by a promoter pursuant to preferential issue of equity shares by the target company.” II. In regulation 6, in sub-regulation (1), the following shall be inserted after the first proviso, namely,- “The relaxation from the first proviso is granted till March 31, 2021.” AJAY TYAGI, Chairman [ADVT.III/4/Exty./55/2020-21] Footnotes: 1. The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,2011 were published in the Gazette of India on 23rd September, 2011 vide No. LAD-NRO/GN/2011 12/24/30181. 2. The Principal Regulations were subsequently amended on: a) March 26, 2013 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2013 vide No. LAD-NRO/GN/2012 13/36/7368. b) October 8, 2013 by the SEBI (Listing of Specified Securities on Institutional Trading Platform) Regulations, 2013 vide No. LAD-NRO/GN/2013-14/28/6720. c) May 23, 2014 by the SEBI (Payment of Fees) (Amendment) Regulations, 2014 vide Notification No. LAD-NRO/GN/2014-15/03/1089. d) March 24, 2015 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2015 vide No. LAD-NRO/GN/2014-15/28/542. e) May 5, 2015 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Second Amendment) Regulations, 2015 vide No. SEBI/LAD-NRO/OIAE/GN/2015-16/004. f) August 14, 2015 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2015 vide No. SEBI/LAD NRO/GN/2015-16/009. g) December 22, 2015 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Fourth Amendment) Regulations, 2015 vide No. SEBI/LAD-NRO/GN/2015-16/026. h) February 17, 2016 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2016 vide No. SEBI/LAD-NRO/GN/2015-16/035. i) May 25, 2016 by the SEBI (Substantial Acquisition of Shares and Takeovers) (Second Amendment) Regulations, 2016 vide No. SEBI/ LAD-NRO/GN/2016- 17/002. j) March 6, 2017 by SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 vide No. SEBI/LAD/NRO/GN/2016-17/037 read with notification dated March 29, 2017 vide No. SEBI/LAD/NRO/GN/2016-17/38. k) August 14, 2017 by SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2017 No. SEBI/LAD-NRO/GN/2017-18/015.[भाग III—खण् ड IV] भारत का रािपत्र : असाधारण 5 l) June 01, 2018 by SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2018 No. SEBI/LAD-NRO/GN/2018/20. m) September 11, 2018 by SEBI (Substantial Acquisition of Shares and Takeovers) (Second Amendment) Regulations, 2018 No. SEBI/LAD-NRO/GN/2018/33. n) December 31, 2018 by SEBI (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2018 No. SEBI/LAD-NRO /GN/ 2018/55. o) March 29, 2019 by SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2019 No. SEBI/LAD-NRO /GN/ 2019/06. p) July 29, 2019 by SEBI (Substantial Acquisition of Shares and Takeovers) (Second Amendment) Regulations, 2019 No. SEBI/LAD-NRO /GN/ 2019/27. q) April 17, 2020 by SEBI (Regulatory Sandbox) (Amendment) Regulations, 2020 No. SEBI/LAD- NRO/GN/2020/10. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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