InvestorQ : What were the highlights of the SEBI Board Meeting during 25 June 2020?
Lavanya Subramanian made post

What were the highlights of the SEBI Board Meeting during 25 June 2020?

Answer
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ishika Banerjee answered.
3 months ago


The recent board meeting of the SEBI board during the week focused on two major areas viz. ease of raising capital and tweaking of insider trading norms. Under the modified rules, preferential offers can now be priced at higher of the 2-weeks price or 12 weeks average price compared to the 26 weeks average price prevalent in the current context.

There was also an issue of making open offers to shareholders in the case of NCLT companies. SEBI has stipulated that In the case of stressed companies, the acquirers have would be summarily exempted from open offer requirements. Takeover Code was tweaked allowing open offers through the stock exchange route to speed up the process.

In case of indirect offers, SEBI has stipulated that 100% of the outlay for the open offer must be deposited in an escrow account 2 days before the actual announcement to show seriousness of the acquirer. SEBI also stipulated that companies will have to maintain digital database of all unpublished price sensitive information and names of persons aware of it.