Executive Summary:
This document contains the Securities and Exchange Board of India (SEBI) Substantial Acquisition of Shares and Takeovers Second Amendment Regulations, 2016. It defines "wilful defaulter" and restricts them from making public announcements of open offers for acquiring shares, with an exception for competing offers. The regulations came into force on May 25, 2016, the date of their publication in the Official Gazette.
Key Points / Main Content:
Definitions:
"Wilful defaulter" is defined as a person categorized as such by any bank, financial institution, or consortium, according to Reserve Bank of India guidelines, including any person whose director, promoter, or partner is categorized similarly.
Restrictions on Wilful Defaulters:
A "wilful defaulter" cannot make a public announcement of an open offer for acquiring shares.
A "wilful defaulter" cannot enter into any transaction that would require them to make a public announcement of an open offer.
Exception:
A "wilful defaulter" can make a competing offer per regulation 20 if another person makes an open offer for acquiring shares of the target company.
Impact Analysis:
SEBI:
Impact: The regulations clarify the definition of "wilful defaulter" and introduce restrictions on their ability to participate in substantial acquisitions of shares and takeovers, which may require SEBI to monitor and enforce these new provisions.
Action Required: SEBI needs to ensure compliance with these amended regulations.
Banks and Financial Institutions:
Impact: Banks and financial institutions are referenced as the bodies that categorize entities as wilful defaulters, in accordance with RBI guidelines.
Action Required: Banks and financial institutions must adhere to the RBI guidelines on wilful defaulters, as this categorization now has implications under SEBI regulations.
Companies and Individuals Planning Acquisitions:
Impact: These regulations impact individuals and companies planning to acquire shares or make takeover offers, especially if they fall under the definition of "wilful defaulter."
Action Required: Individuals and companies must ensure they are not categorized as "wilful defaulters" before making public announcements or entering transactions for share acquisitions, and should seek legal counsel.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for securities markets in India.
Securities and Exchange Board of India Act, 1992: The act of the Indian Parliament that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Regulations, 2011: Regulations by SEBI concerning the substantial acquisition of shares and takeovers.
Securities and Exchange Board of India Substantial Acquisition of Shares and Takeovers Second Amendment Regulations, 2016: An amendment to the 2011 regulations by SEBI.
Mumbai, Maharashtra: The city in Maharashtra where the notification was issued.
Official Gazette: A publication containing official government notifications.
Reserve Bank of India: The central bank of India.
U. K. Sinha: Chairman of SEBI at the time of notification.
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 223] ubZ fnYyh] cq/okj] ebZ 25] 2016@T;s"B 4] 1938
No. 223] NEW DELHI, WEDNESDAY, MAY 25, 2016/ JYAISTHA 4, 1938
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
अअअअििििधधधधससससचचूूचचूू ननननाााा
मु(cid:3)बई, 10 मई, 2016
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
((((शशशशेयेयेयेयरररर(cid:14)(cid:14)(cid:14)(cid:14) ककककाााा पपपपययययाााा(cid:17)(cid:17)(cid:9)(cid:9)(cid:17)(cid:17)(cid:9)(cid:9) अअअअजजजजनन(cid:9)(cid:9)नन(cid:9)(cid:9) औऔऔऔरररर अअअअििििधधधध(cid:22)(cid:22)(cid:22)(cid:22)हहहहणणणण)))) ((((ददददससससूूूू रररराााा ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011116666
सससस..ंं..ंं ससससबबेेबबेे ीीीी////एएएएलललल....एएएए....डडडडीीीी.... ---- एएएएनननन....आआआआरररर....ओओओओ....////जजजजीीीी....एएएएनननन....////2222000011116666----11117777////000000002222.— बोड,(cid:8) भारतीय (cid:9)ितभूित और िविनमय
बोड (cid:8) अिधिनयम, 1992 (1992 का 15) क(cid:15) धारा 30 के अधीन (cid:9)द(cid:17) शि(cid:19)य(cid:21) का (cid:9)योग करत े (cid:23)ए एत(cid:25)ारा
भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और अिध#हण) िविनयम, 2011 का और संशोधन
करन ेके िलए िन&िलिखत िविनयम बनाता ह,ै अथा(cid:8)त ्:-
1111.... इन िविनयम(cid:21) को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और अिध#हण) (दसू रा
संशोधन) िविनयम, 2016 कहा जा सकेगा ।
2222.... व े राजप, म - उनके (cid:9)काशन क(cid:15) तारीख को (cid:9)वृ(cid:17) ह(cid:21)ग े ।
3333.... भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और अिध#हण) िविनयम, 2011 म-,-
(I) िविनयम 2 म,- उप-िविनयम (1) म,- -
(1) खंड (यङ), खंड (यच) के /प म - पुनः सं2यां3कत हो जाएगा;
(2) खंड (यघ) के प4ात ् और खंड (यच) से पूव,(cid:8) िन&िलिखत अंतः6थािपत 3कया जाएगा, अथा(cid:8)त,् -
2625GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
"(यङ) "इरादतन चूककता"(cid:8) से कोई ऐसा 8ि(cid:19) अिभ(cid:9)ेत ह,ै िजस े भारतीय 9रज़व (cid:8) बक; <ारा
इरादतन चूककता(cid:8)= के संबधं म - जारी 3कए गए मागद(cid:8) श(cid:8)क िस>ाँत(cid:21) (गाइडलाइAस) के अनुसार,
3कसी ब;क या िव(cid:17)ीय स6ं था या उनके कनसॉDटयम <ारा, इरादतन चूककता (cid:8) के /प म- वगFकृत
3कया गया हो और िजसम - कोई ऐसा 8ि(cid:19) सि(cid:3)मिलत ह ै िजसके िनदशे क (डायरेGटर), सं(cid:9)वतक(cid:8)
((cid:9)ोमोटर) या भागीदार (पाट(cid:8)नर) को इस /प म- वगFकृत 3कया गया हो;"
(II) िविनयम 6 के प4ात ् और िविनयम 7 से पूव,(cid:8) िन&िलिखत अंतः6थािपत 3कया जाएगा, अथा(cid:8)त,् -
"6क. इन िविनयम(cid:21) म - दी (cid:23)ई 3कसी बात के होते (cid:23)ए भी, कोई भी 8ि(cid:19) (जो इरादतन चूककता (cid:8) हो)
शेयर(cid:21) को अHजत करन े के िलए खुले (cid:9)6ताव (ओपन ऑफर) क(cid:15) साव(cid:8)जिनक घोषणा नहI करेगा या
ऐसा कोई सं8वहार (JांजेGशन) नहI करेगा, िजसस े इन िविनयम(cid:21) के अधीन शेयर(cid:21) को अHजत करन े
के िलए खुले (cid:9)6ताव क(cid:15) सावज(cid:8) िनक घोषणा करन ेक(cid:15) बाKयता आकृM हो जाए:
परंतु यह 3क यह िविनयम इरादतन चूककता (cid:8) को इन िविनयम(cid:21) के िविनयम 20 के अनुसार (cid:9)ितयोगी
(cid:9)6ताव (क(cid:3)पीNटग ऑफर) लान े स े तब (cid:9)ितिष> नहI करेगा, जब कोई अAय 8ि(cid:19) लिPत कंपनी
(टागQट कंपनी) के शेयर(cid:21) को अHजत करन ेके िलए खुला (cid:9)6ताव ला रहा हो ।"
यू. के. िसAहा, अKयP
[िवRापन-III/4/असा./107]
पपपपाााादददद (cid:25)(cid:25)(cid:25)(cid:25)टटटट(cid:27)(cid:27)(cid:27)(cid:27)पपपपणणणण ::::
1. भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और अिध#हण) िविनयम, 2011, सं.
एल.ए.डी.-एन.आर.ओ./जी.एन./2011-12/24/30181, 23 िसत(cid:3)बर 2011 को भारत के राजप, म-
(cid:9)कािशत (cid:23)ए थे ।
2. मूल िविनयम तTप4ात ्:
(क) 26 माच,(cid:8) 2013 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और
अिध#हण) (संशोधन) िविनयम, 2013, स.ं एल.ए.डी.-एन.आर.ओ./जी.एन./2012-
13/36/7368, <ारा
(ख) 8 अ(cid:19)ूबर, 2013 को भारतीय (cid:9)ितभूित और िविनमय बोड(cid:8) {स6ं थागत 8ापा9रक (JेVडग)
Wलेटफाम(cid:8) पर िविनYदM (cid:9)ितभूितय(cid:21) क(cid:15) सूचीब>ता} िविनयम, 2013, स.ं एल.ए.डी.-
एन.आर.ओ./जी.एन./2013-14/28/6720, <ारा
(ग) 23 मई, 2014 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (फ(cid:15)स का संदाय) (संशोधन) िविनयम,
2014, सं. एल.ए.डी.-एन.आर.ओ./जी.एन./2014-15/03/1089, <ारा¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(घ) 24 माच,(cid:8) 2015 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और
अिध#हण) (संशोधन) िविनयम, 2015, सं. एल.ए.डी.-एन.आर.ओ/जी.एन./2014-15/28/542,
<ारा
(ङ) 5 मई, 2015 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और अिध#हण)
(दसू रा संशोधन) िविनयम, 2015, स.ं सबे ी.एन.आर.ओ./ ओ.आई.ए.इ./जी.एन./2015-16/004,
<ारा
(च) 14 अग6त, 2015 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और
अिध#हण) (तीसरा संशोधन) िविनयम, 2015, स.ं सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-
16/009, <ारा
(छ) 22 3दस(cid:3)बर, 2015 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और
अिध#हण) (चौथा संशोधन) िविनयम, 2015, सं. सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-
16/026, <ारा
(ज) 17 फरवरी, 2016 को भारतीय (cid:9)ितभूित और िविनमय बोड (cid:8) (शेयर(cid:21) का पया(cid:8)(cid:30) अज(cid:8)न और
अिध#हण) (संशोधन) िविनयम, 2016, सं. सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-
16/035, <ारा संशोिधत (cid:23)ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 10th May, 2016
SECURITIES AND EXCHANGE BOARD OF INDIA (SUBSTANTIAL ACQUISITION OF SHARES
AND TAKEOVERS) (SECONDAMENDMENT) REGULATIONS, 2016
No. SEBI/LAD-NRO/GN/2016-17/002.─ In 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 further amend the Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011, namely:Ñ
1. These regulations may be called the Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) (Second Amendment) Regulations, 2016.
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 2, in sub-regulation (1),-
(1) clause (ze) shall be re-numbered as clause (zf);
(2) after clause (zd) and before clause (zf) the following shall be inserted, namely,-4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
"(ze) "wilful defaulter" means any person who is categorized as a wilful defaulter by any bank or
financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters
issued by the Reserve Bank of India and includes any person whose director, promoter or partner is
categorized as such;”
(II) After regulation 6 and before regulation 7, the following shall be inserted, namely,-
“6A. Notwithstanding anything contained in these regulations, no person who is a wilful defaulter
shall make a public announcement of an open offer for acquiring shares or enter into any transaction
that would attract the obligation to make a public announcement of an open offer for acquiring shares
under these regulations:
Provided that this regulation shall not prohibit the wilful defaulter from making a competing offer in
accordance with regulation 20 of these regulations upon any other person making an open offer for
acquiring shares of the target company. ”
U. K. SINHA, Chairman
[ADVT.-III /4/Exty./107]
Footnote:
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.
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.