SEBI ensures greater say for public shareholders in merger cases
MUMBAI: As part of its attempts to safeguard the interests of the public shareholders, the Securities and Exchange Board of India (SEBI) has tightened the norms for merger of an unlisted company with a listed entity.
The board of the capital market regulator, which met at Jaipur, decided that the holding of public shareholders post the merger cannot be less than 25 per cent. Further, the watchdog has stipulated a similar threshold for institutional shareholders of the unlisted entity as well post the merger.
“The objective is to have wider public shareholding and to prevent very large unlisted company to get listed by merging with a very small company,” said a statement issued by SEBI. Thehindu