Mergers and Acquisitions in Indan Industry

DECODING THE PROPOSED TAKEOVER CODE

Awadhesh Kr.Tiwari
&
Gayatri Mohanti
(Assistt.Professor)
DSPSR - Delhi Abstract
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It has been realized globally that Mergers and Acquisitions is the only way for gaining competitive and synergical advantage domestically and internationally and whole range of industries are looking to strategic acquisitions within India and Abroad. In the last two decade, many cases related to Mergers and Acquisitions has taken place. In 1994 SEBI had issued maiden guidelines for regulating takeovers in India which was revised in 1997 and since then, the regulations have been known as Takeover Code. In order to provide a transparent legal framework for facilitating takeover activities and to protect the interest of investors, a new text of Takeover has been drafted with substantial changes in the takeover regulations of 1997. The present research paper have a theoretical background describing the conceptual framework of takeover and overview of existing and proposed takeover code and an attempt has been made to evaluate the proposed Takeover Code. ____________________________________________________________

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Key Words: Takeover Code, SEBI, Acquisition, Open Offer, Company Act, 1956, Offer Price.

Prelude:
 History of Takeover Code
 A Conceptual Framework of Takeover
 Overview of Takeover Regulations
 Required Disclosures
 Takeover code Trigger
 Proposed Takeover CODE
 Fundamental Objectives of Proposed Takeover Code
 salient features of the proposed takeover regulations
 Decoding the Proposed Takeover Code
 Concluding Remarks

History of Takeover Code
The laws relating to takeovers in India where not very organized until the year 1994.The guidelines of the Securities and Exchange board of India (Substantial acquisition of shares and takeover) 1994 was a maiden Indian attempt towards an