Sebi amendment to help sale of Satyam Computer

MUMBAI: Satyam Computers Chairman, Kiran Karnik, on Friday welcomed the Sebi amendment to the takeover regulations.


The Great Fall of SatyamSatyam: Full CoverageThe crux of the scam in SatyamTop Accounting scandalsFive facts about Satyam"I have not seen the Sebi amendment in great detail but welcome this move as it helps us (Satyam Board) to move quickly (on the sale process)," Karnik told reporters on the sidelines of the Nasscom summit here. "We were waiting for Sebi to come out with its norms as it defines our further process," Karnik said. Sebi eased takeover norms for companies whose board has been superseded by the government, under which suitors such as those for Satyam Computer need not make an open offer. The amended rules also disallows open offers from rival bidders if an acquirer has already made an open offer. The regulator said the amendment to the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, provides for "relaxation from the strict compliance of provisions of Chapter-III in certain cases." Chapter-III deals with mandatory open offer if an entity acquires 15 per cent stake in a company, as also for acquisition or change of control of the company, among others. Sebi, on an application made by a target company, said it can relax any or more provisions of this chapter if certain conditions are met. It was referring to cases where central, state government or any other regulator having superseded the board of a company.