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New takeover code trigger points 2011

cs sharmila (company secretary) (150 Points)

25 April 2012

Hi Friends,

Kindly give me details of Trigger point where provvision of SEBI(SAST)reg,2011.NEW TAKEOVER CODE gets triggered.

* Creeping acquisition limit.........?

*Consolidation of holding..........?

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1. Increase in Initial Threshold Limit from 15% to 25%.

The Initial Threshold limit provided for Open Offer obligations is increased from 15% to 25% of the voting rights of the Target Company. Since SEBI (SAST) Regulations, 2011 will be applicable from October 22, 2011, thus it’s a last opportunity for all the Promoters holding less than 25% but more than 20% to come within bracket of Creeping Acquisition. Otherwise even the existing Promoters of these Companies have to give offer to consolidate their holding.

2. Creeping Acquisition Limit raised from 15%-55% to 25%-75%:

Now there will a single and clear creeping acquisition bracket. This will be available to all persons holding 25% or more but up to 75% i.e maximum permissible non-public holding shall be eligible for creeping acquisition of 5% each financial year.

Also see the attached files. For more info please visit Takeover code.com.

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