SEBI forms a panel headed by Justice Shiavax Jal Vazifadar to review the Corporate Takeover rules

Tags: committee Economy/Finance

The Capital market regulator Securities Exchange Board of India (SEBI) has formed a 20 member high level panel to review the extant corporate takeover rules.

The 20 member panel will be headed by the former chief justice of Punjab and Haryana High Court Justice Shiavax Jal Vazifadar.

The takeover code was last reviewed in 2009 by the Achutan committee.

Function of the Panel 

The panel will review the existing corporate takeover rules and suggest changes in it keeping in mind the judicial pronouncement and best global practices. 

It will suggest measures to facilitate ease of doing business in India.

 Corporate takeover code in India 

With the opening of the Indian economy to the private sector and foreign investors, a need was felt to make a rule which will promote transparency in the case of Merger and Acquisition (M&A) of companies.

SEBI made the first comprehensive code for M&A in 1994 called  Securities and Exchange Board of India (Sebi) (Substantial Acquisition of Shares and Takeovers) Regulations.

The code has amended significantly twice.

It was amended in 1997 on the recommendation of Justice P N Bhagwati committee.

The code was again amended in 2011 by SEBI on the recommendation of the 2009 Achutan committee on corporate takeover.

Securities and Exchange Board of India (SEBI) 

The Securities and Exchange Board of India was constituted as a non-statutory body on April 12, 1988 through a resolution of the Government of India.

The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.

It is the regulator of the capital and commodities market in India.

Headquarters: Mumbai

Current Chairman: Madhabi Puri Buch