On Thursday, SEBI meeting in Mumbai laid some hardcore decisions considering the report of Takeover Regulations Advisory Committee (TRAC). The decisions were quiet in compliance with TRAC’s recommendations

Most of TRAC’s recommendations were accepted by the board including the increment of initial trigger threshold by 10% i. e. from 15% earlier to 25%. The provision of non-compete fees was cancelled and now all shareholders can exit at the same price.

For competitive offers, the bidders can acquire shares of other bidders after the offer period has expired. Voluntary offer will now be more restricted. A recommendation on the offer by the Board of Target Company has been made necessary.

On the matters of control and offer size, the board decided that the existing definition of control shall remain unchanged. Minimum offer size shall be increased by 6% i. e. 26% of the total issued capital.

According to new decisions, the distributors now may charge Rs. 100 per transaction above Rs. 10,000. Amount falling below Rs. 10,000 shall not imply any charge. Additional Rs. 50 maybe charged from the first time mutual fund investors. Transactions other than purchases will not be charged from now onwards.

Now some of the specific distributors will be regulated through Asset Management Companies (AMCs).