SEBI issued Substantial Acquisition of Shares and Takeovers Regulations, 2011
Securities and Exchange Boar of India (SEBI) on 23 September 2011 notified the new takeover rule under which an entity buying 25% stake in a listed firm will have to mandatorily make an open offer to buy an additional 26% shares from the public. The notification follows the decision taken at SEBI's board meeting in July 2011.
The new norms mark an increase in the open offer size for public shareholders from 20 per cent currently. The trigger for making such an offer was raised from 15 per cent under the existing regulations.
According to SEBI no acquirer shall acquire shares in a target company which taken together with shares or voting rights held by him entitle them to exercise 25 per cent or more of the voting rights unless the acquirer makes a public announcement of an open offer.
The new regulations, titled as The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 will come into effect from October 2011.
As per the new rules there would be no separate provision for non-compete fees, which allows promoters to higher price than the public shareholders, and all shareholders should be given the exit option at the same price. SEBI, as part of the new code, allowed voluntary offers subject to certain conditions.
Regarding control and offer size, SEBI mentioned that the existing definition of control would be retained and the minimum offer size shall be increased to 26% of the target company.
Accepting the recommendations of a SEBI-appointed panel on the matter, the regulator also decided to abolish the non-compete fees that acquirers generally pay to the sellers in merger and acquisition deals. While the recommendation on trigger was accepted, the suggestion for offer size has been kept lower due to intense opposition from industry and other market participants.
The panel had opined against non-compete fees for promoters which often worked out as high as 25% of the deal value.
A SEBI panel on new takeover regulation had in 2010 recommended an open offer for buying up to 100% in the target company, while suggesting an increase in the trigger limit to 25%.
India and Zimbabwe Agreed to Expedite the Ratification Process of BIPA
India and Zimbabwe on 21 September 2011 agreed to expedite the ratification process of Bilateral Investment Promotion and Protection Agreement (BIPA) during the visit of Minister of State for Commerce and Industries Jyotiraditya Scindia.
BIPA aims at boosting bilateral investments. The BIPA was signed between India and South Africa in February 1999 but hasn’t come into force. The Bilateral trade between India and Zimbabwe stood at 125 million US dollars in 2010-11. India and Zimbabwe also launched a chamber of commerce during his visit.
The First Strategic Economic Dialogue between India and China was held in Beijing
India and China held their first Strategic Economic Dialogue in Beijing on 26 September 2011. India and China agreed to deepen bilateral investment cooperation, further open up markets to each other and improve the investment environment.
India and China also agreed to strengthen cooperation on energy efficiency and conservation, as well as on environmental protection. In order to promote sustainable development, the two sides agreed to cooperate in the renewable energy sector. The two sides agreed to host the next SED in 2012 in India.
Strategic Economic Dialogue will increase mutual understanding and trust between India and China. Through this dialogue, both nations could share their experience to achieve economic development. Although the bilateral trade crossed 61 billion US dollars in 2011, India was left with deficit of over 40.9 billion US dollars due to accelerated exports from China.
India Signed Double Taxation Avoidance Agreement with Estonia
India signed DTAA (Double Taxation Avoidance Agreement) with Estonia on 19 September 2011 and forged a pact to work with it in the field of information, communications and technology (ICT). The DTAA and the pact on ICT was signed during the visit of communications and Information Technology Minister Kapil Sibal to Estonia. Kapil signed the DTAA with Estonian Minister of Finance Jurgen Ligi.
India will also set up a Chair on Cyber Security in Tallinn University and a Chair on Indian languages, history and literature in another of Estonia’s universities.
The government of Estonia also announced 20 scholarships for Indian students that enroll with Estonian universities for accredited doctoral programme leading to a PhD degree in information and communication technology, environment technology, biotechnology, material technology power engineering or health.
Sibal travelled to Helsinki, Finland, to participate in a summit on information and network security for emerging markets following his visit to Estonia. Estonia is a state in the Baltic region of Northern Europe.
India and South Africa Agreed to Strengthen Bilateral Cooperation in the MSME
India and South Africa agreed to strengthen bilateral cooperation in the MSME (micro, small and medium enterprise) sector. This was agreed in a bilateral meeting between Jyotiradiya M Scindia, Minister of state Commerce and Industries and Elizabeth Thabethe, Deputy Minister for Trade & Industry, government of South Africa. South Africa houses many prominent centres of learning and excellence. The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances in MSME sector, which could be in the form of joint ventures, technology collaborations or marketing tie-ups.
The total trade between the two countries in the financial year 2010-11 was 10.6 billion US dollars, higher than bilateral trade target of 10 billion US dollars by the year 2012, set during the visit of South African President Jacob Zuma to India in June, 2010. A revised bilateral trade target of 15 billion US dollars has been set for the year 2014 during the meeting of Minister of Commerce and Industry, Government of India and the Minister of Trade and Industry, Government of South Africa held on 10 January, 2011. South Africa is India’s 2nd largest trading partner in Africa. There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods.
There is active contact between India and South Africa in multilateral fora, particularly at the NAM, Commonwealth, G-77, G-20, NAASP and WTO. Both countries are part of the IBSA trilateral initiative. Both countries are currently non-permanent members of the UN Security Council (2011-2012). SA rendered pro-active support in the NSG decision to enable full civil nuclear cooperation with India. SA recently participated in the BRICS summit held in China in April, 2011.
ONGC, Coal India, NMDC awarded by the Government for Best Performance
ONGC, Coal India (CIL) and NMDC were awarded by the government for best performance in different categories on 20 September. The Department of Public Enterprises (DPE) Secretary, Bhaskar Chatterjee gaveaway the awards.
Best financial performance award in Maharatna and Navaratna category was given to ONGC. In Miniratna category, the best financial performance award award has been given to Goa Shipyard.
Good Corporate Governance award in Maharatna and Navaratna category was also given to ONGC. Good Corporate Governance award in Miniratna category, the same award was given to Chennai Petroleum Corporation Ltd. K Balachandan MD, CPCL received the award.
The company of the year award in Maharatna category was given to CIL. The same awards for the Navaratna category were given to NMDC and Oil India.
50 Central Public Sector Enterprises (CPSEs) listed on the stock exchanges as on 30 August 2011 contributed about 22 per cent of the total market capitalisation. The CPSE with the highest market capitalisation was Coal India at Rs 236,832 crore (BSE) and Rs 237243 crore (NSE) as on 31 August.
Securities and Exchange Boar of India (SEBI) on 23 September 2011 notified the new takeover rule under which an entity buying 25% stake in a listed firm will have to mandatorily make an open offer to buy an additional 26% shares from the public. The notification follows the decision taken at SEBI's board meeting in July 2011.
The new norms mark an increase in the open offer size for public shareholders from 20 per cent currently. The trigger for making such an offer was raised from 15 per cent under the existing regulations.
According to SEBI no acquirer shall acquire shares in a target company which taken together with shares or voting rights held by him entitle them to exercise 25 per cent or more of the voting rights unless the acquirer makes a public announcement of an open offer.
The new regulations, titled as The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 will come into effect from October 2011.
As per the new rules there would be no separate provision for non-compete fees, which allows promoters to higher price than the public shareholders, and all shareholders should be given the exit option at the same price. SEBI, as part of the new code, allowed voluntary offers subject to certain conditions.
Regarding control and offer size, SEBI mentioned that the existing definition of control would be retained and the minimum offer size shall be increased to 26% of the target company.
Accepting the recommendations of a SEBI-appointed panel on the matter, the regulator also decided to abolish the non-compete fees that acquirers generally pay to the sellers in merger and acquisition deals. While the recommendation on trigger was accepted, the suggestion for offer size has been kept lower due to intense opposition from industry and other market participants.
The panel had opined against non-compete fees for promoters which often worked out as high as 25% of the deal value.
A SEBI panel on new takeover regulation had in 2010 recommended an open offer for buying up to 100% in the target company, while suggesting an increase in the trigger limit to 25%.
India and Zimbabwe Agreed to Expedite the Ratification Process of BIPA
India and Zimbabwe on 21 September 2011 agreed to expedite the ratification process of Bilateral Investment Promotion and Protection Agreement (BIPA) during the visit of Minister of State for Commerce and Industries Jyotiraditya Scindia.
BIPA aims at boosting bilateral investments. The BIPA was signed between India and South Africa in February 1999 but hasn’t come into force. The Bilateral trade between India and Zimbabwe stood at 125 million US dollars in 2010-11. India and Zimbabwe also launched a chamber of commerce during his visit.
The First Strategic Economic Dialogue between India and China was held in Beijing
India and China held their first Strategic Economic Dialogue in Beijing on 26 September 2011. India and China agreed to deepen bilateral investment cooperation, further open up markets to each other and improve the investment environment.
India and China also agreed to strengthen cooperation on energy efficiency and conservation, as well as on environmental protection. In order to promote sustainable development, the two sides agreed to cooperate in the renewable energy sector. The two sides agreed to host the next SED in 2012 in India.
Strategic Economic Dialogue will increase mutual understanding and trust between India and China. Through this dialogue, both nations could share their experience to achieve economic development. Although the bilateral trade crossed 61 billion US dollars in 2011, India was left with deficit of over 40.9 billion US dollars due to accelerated exports from China.
India Signed Double Taxation Avoidance Agreement with Estonia
India signed DTAA (Double Taxation Avoidance Agreement) with Estonia on 19 September 2011 and forged a pact to work with it in the field of information, communications and technology (ICT). The DTAA and the pact on ICT was signed during the visit of communications and Information Technology Minister Kapil Sibal to Estonia. Kapil signed the DTAA with Estonian Minister of Finance Jurgen Ligi.
India will also set up a Chair on Cyber Security in Tallinn University and a Chair on Indian languages, history and literature in another of Estonia’s universities.
The government of Estonia also announced 20 scholarships for Indian students that enroll with Estonian universities for accredited doctoral programme leading to a PhD degree in information and communication technology, environment technology, biotechnology, material technology power engineering or health.
Sibal travelled to Helsinki, Finland, to participate in a summit on information and network security for emerging markets following his visit to Estonia. Estonia is a state in the Baltic region of Northern Europe.
India and South Africa Agreed to Strengthen Bilateral Cooperation in the MSME
India and South Africa agreed to strengthen bilateral cooperation in the MSME (micro, small and medium enterprise) sector. This was agreed in a bilateral meeting between Jyotiradiya M Scindia, Minister of state Commerce and Industries and Elizabeth Thabethe, Deputy Minister for Trade & Industry, government of South Africa. South Africa houses many prominent centres of learning and excellence. The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances in MSME sector, which could be in the form of joint ventures, technology collaborations or marketing tie-ups.
The total trade between the two countries in the financial year 2010-11 was 10.6 billion US dollars, higher than bilateral trade target of 10 billion US dollars by the year 2012, set during the visit of South African President Jacob Zuma to India in June, 2010. A revised bilateral trade target of 15 billion US dollars has been set for the year 2014 during the meeting of Minister of Commerce and Industry, Government of India and the Minister of Trade and Industry, Government of South Africa held on 10 January, 2011. South Africa is India’s 2nd largest trading partner in Africa. There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods.
There is active contact between India and South Africa in multilateral fora, particularly at the NAM, Commonwealth, G-77, G-20, NAASP and WTO. Both countries are part of the IBSA trilateral initiative. Both countries are currently non-permanent members of the UN Security Council (2011-2012). SA rendered pro-active support in the NSG decision to enable full civil nuclear cooperation with India. SA recently participated in the BRICS summit held in China in April, 2011.
ONGC, Coal India, NMDC awarded by the Government for Best Performance
ONGC, Coal India (CIL) and NMDC were awarded by the government for best performance in different categories on 20 September. The Department of Public Enterprises (DPE) Secretary, Bhaskar Chatterjee gaveaway the awards.
Best financial performance award in Maharatna and Navaratna category was given to ONGC. In Miniratna category, the best financial performance award award has been given to Goa Shipyard.
Good Corporate Governance award in Maharatna and Navaratna category was also given to ONGC. Good Corporate Governance award in Miniratna category, the same award was given to Chennai Petroleum Corporation Ltd. K Balachandan MD, CPCL received the award.
The company of the year award in Maharatna category was given to CIL. The same awards for the Navaratna category were given to NMDC and Oil India.
50 Central Public Sector Enterprises (CPSEs) listed on the stock exchanges as on 30 August 2011 contributed about 22 per cent of the total market capitalisation. The CPSE with the highest market capitalisation was Coal India at Rs 236,832 crore (BSE) and Rs 237243 crore (NSE) as on 31 August.
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