SEBI (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2010 – Amendment in regulation 3

Notification No. LAD-NRO/GN/2010-11/05/1110, dated 13-4-2010

In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to amend the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, namely :––

1.   (i) These regulations may be called the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regula tions, 2010.

(ii) These regulations shall come into force on the date of their publication in the Official Gazette.

2.      In the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997,

(i) in regulation 3, in sub-regulation (1), in clause (f), after sub-clause (vi), the following sub-clause shall be inserted, namely :-

'(vii) a merchant banker or nominated investor in the process of market making and subscripttion by the nominated investor to the unsubscribed portion of issue, in terms of Chapter XA of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 :

Provided that benefit of exception provided in sub  clause (vii) shall not be available if the acquisition of securities in the process of market making or subscripttion to the unsubscribed portion of issue results in change in control over the target company, directly or indirectly."