Photo: MintMumbai: The Securities and Exchange Board of India (Sebi) said on Friday that it intends to retain its definition of ‘control’ of companies and drop the suggestions it had made to alter the definition after a March 2016 board meeting. In that note, it proposed two options to sharpen the definition of control. “So, it is always better to treat the concept of ‘control’ as per the case law, while having one set of generic thumb rules in place. This is what Sebi is attempting to do and, hence, it was better to scrap the plan to change the definition of control by introducing concepts of protective rights or any other numerical thresholds. In cases of takeovers, wherein the controlling shareholder is less than 25%, this approach of Sebi (to follow case law) will help more.

Source: Mint September 08, 2017 14:26 UTC