SEBI (Mutual Funds) (Amendment) Regulations, 2015
Pursuant to the notification dated May 15, 2015,Regulation 24 of the SEBI (Mutual Funds) Regulations, 1996 has been amended to allow asset management companies to provide services in the nature of management and advisory services toCategory I foreign portfolio investors.
SEBI (Substantial Acquisition of Shares and Takeover) (Second Amendment) Regulations, 2015
Regulation 10 of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (Takeover Code) provides general exemptions from making a mandatory open offer. The SEBI’s notification dated May 5, 2015, amends the Takeover Code to exempt any acquisition of equity shares by consortium of banks, financial institutions and other secured lenders pursuant to conversion of their debt as part of an SDR, from the mandatory requirement of open offer. This is subject to compliance of the conditions mentioned in Regulations 70(5) and 70 (6) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (ICDR Regulations).
Corresponding amendments have also been made in the ICDR Regulations. Regulation 70 has been amended to include the conditions referred to above. The conditions inter alia include that conversion price shall be in accordance with the guidelines prescribed by the RBI for SDR and it shall be certified by 2 (two) independent valuers.
Simplified framework for capital raising by technological start-ups and other companies
In its board meeting dated June 23, 2015, SEBI approved proposals for providing access to capital raising to a larger number of start-ups on the institutional trading platform (ITP), which allows specified companies to list and trade certain securities without an initial public offering. The ITP will be made available to companies in which at least 50% of the pre-issue capital is held by qualified institutional buyers (QIBs) and companies which “are intensive in their use of technology, information technology, intellectual property, data analytics, bio-technology, nano-technology to provide products, services or business platforms with substantial value addition and with at least 25% of the pre-issue capital being held by QIBs“.
For further information, please contact:
Abhishek Saxena, Partner, Phoenix Legal