To present this impact, the regulator has amended LODR (Itemizing Obligations and disclosure Necessities) norms.
Earlier in September, the Securities and Exchange Board of India (Sebi) had determined to dispense with a requirement for calculating open supply worth with respect to the disinvestment of PSUs.
As per Sebi norms, one of many parameters prescribed to find out the open supply worth of a continuously traded scrip is Quantity-Weighted Common Market Worth (VWAMP) for 60 buying and selling days instantly previous the date of the general public announcement.
The board of Sebi authorized amending the takeover rules within the context of strategic disinvestment of PSUs and consideration payable beneath open supply.
”The market worth of the PSU firm present process strategic disinvestment turns into prone to… periodic disclosures.
“Contemplating the distinctive nature of transaction and course of concerned in a PSU disinvestment spanning over an extended interval, such a requirement of dedication of open supply worth beneath the takeover rules many a time acts as an obstacle in fructifying such strategic disinvestment of PSUs,” Sebi has stated.
Towards this backdrop, Sebi has determined to dispense with the requirement of calculating 60 days’ VWAMP for the dedication of open supply worth in case of disinvestment of PSU corporations whereby it leads to its change in management, both by the use of direct acquisition or oblique acquisition.