The exemption from making an open offer in case of acquisition of over 26% in a listed company will be allowed only to banks, lenders and financial institutions. “Exemption from open offer will not be allowed to any other person except the aforesaid lenders," according to a Sebi statement issued after a meeting of its board on Friday.
Sebi also removed the “competent authority" clause for exemption from an open offer. Currently, an exemption is allowed from making an open offer to minority investors if there is a court or tribunal order or reference from a competent authority “under any law and regulation Indian or foreign".
This will likely make prospects of any fund infusion by Etihad Airways in Jet Airways difficult as the former was banking on an exemption for making an open offer under this clause, based on a reference from aviation ministry and the directorate general of civil aviation (DGCA).
“Now a reference from the ministry or a regulator may not be sufficient to get an exemption from an open offer under the proposed amendments. A court order or tribunal ruling that such an exemption from open offer to a private investor is in interest of the company/investors will allow exemption from an open offer," said Tejesh Chitlangi, senior partner, IC Universal Legal.
“Institutional participation will play an important role in adding liquidity and depth to the commodity derivatives market, leading to enhanced efficiency in price discovery and risk management. Moreover, this will provide the Indian investors easy access to a new asset class and cater to their diversified investment and trading needs," said Mrugank Paranjape, managing director and chief executive officer, Multi Commodity Exchange of India Ltd (MCX).
Alternate investment funds (AIF) Category 3 have also been allowed to invest in not just commodity derivatives but also physical commodities.
Fund houses followed different timelines to write off below-investment grade bonds because of the lack of standard practice. To address the anomaly, Sebi directed that valuation agencies employed by the Association of Mutual Funds in India (Amfi) will decide on valuing these bonds.
“It will create the necessary market depth for this yield instrument. It’s a win-win for both investors and developers. While investors will now get attractive equity returns, developers will benefit as these changes will make the InvIT platforms more competitive for acquiring infrastructure projects." said Harsh Shah, chief executive officer of IndiGrid (India Grid Trust).
Allotment by REIT/InvIT shall in the multiples of a lot, each consisting of 100 units. The value of such allotment lot for InvITs shall be ₹1 lakh and for REITs ₹50,000, Sebi said.