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Takeover code, uniform KYC norms on Sebi’s board meet agenda

Takeover code, uniform KYC norms on Sebi’s board meet agenda
PTI
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First Published: Sun, Jul 24 2011. 11 56 AM IST
Updated: Sun, Jul 24 2011. 11 56 AM IST
New Delhi: Capital market regulator Sebi is likely to discuss the much-waited takeover code and uniform KYC norms at its board meeting scheduled for 28 July.
Other key issues like eligibility criteria for IPOs and electronic reporting on a Sebi unified platform are also on the agenda of the meeting that would be held in Mumbai, a finance ministry official said.
Of all the issues, the industry and other stakeholders are keenly awaiting a decision on the Achuthan committee report on changes to the takeover code governing mergers and acquisitions.
Two recommendations of the committee that came in for much debate were the 100% open offer size rule which would provide an exit option to all shareholders of the target company and abolition of non-compete fees separately paid by an acquirer to the promoter of a target company.
The Sebi panel’s report also recommended that the initial acquisition threshold for a mandatory open offer be raised to 25% of voting capital of the target company.
On the issue of uniform KYC norms for players like FIIs, mutual funds and brokerage customers, the official said: “As of now there separate know-your-customer (KYC) norms for different segments. In order to ensure seamless identification of customers in the securities market, we want to have an uniform KYC”.
The board was earlier slated to meet on 30 June, which got postponed, as Sebi chairman U K Sinha was then visiting US along with finance minister Pranab Mukherjee.
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First Published: Sun, Jul 24 2011. 11 56 AM IST
More Topics: Sebi | Code | KYC Norms | IPOs | Mergers |