July 02, 2020
Summary of the notifications issued by SEBI and IBBI on 01/07/2020 and 30/06/2020 respectively
1. Amendment to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
Following are the key highlights of the notification-
- in case of indirect acquisitions where public announcement is required to be made under Regulation 13(2)(e) of the Takeover code,
- an amount equivalent to hundred per cent of the consideration payable in the open offer shall be deposited in the escrow account.
- deposit of securities will not be treated as an eligible escrow balance
- Acquirer shall pay interest @10% p.a. for the period of delay to all such shareholders whose shares have been accepted in the open offer, in case the acquirer is unable to make payment to the shareholders who have accepted the open offer within such period, unless the Board waives it off.
2. IBBI amends recognition criteria for an Insolvency Professional Entity(IPE) under IBC, 2016
Through this notification, a company, a registered partnership firm or a limited liability partnership may be recognised as an IPE under the IBC, 2016 provided its sole objective is to serve Insolvency Professionals, not necessarily its partners or directors, as previously required.