3rd May 2005: The market regulator Securities and Exchange Board of India (SEBI) plans to revamp all its regulations to make it simpler and amend the Takeover Code by June, its Chairman M Damodaran said on Saturday.
“We have an open mind.... There are some areas that need improvement. After discussions with FICCI, CII and group of individuals, and detailed internal examinations, we have commenced the process of revising the Takeover Code,” he said on the sidelines of a seminar here.
“Our expectation is the process is expected to be completed in the next two weeks and we should be able to get a board discussion on this in the next board meeting in May end. If it (amendment) does not happen in May, it will certainly happen in June,” he said. India Inc wanted the ceiling on acquisition to be restored to 75 per cent from the present 55 per cent.
“The present reduction in the ceiling on acqusition from 75 to 55 per cent is not warranted and will unnecessarily cause problems for many promoters,” FICCI member Sidharth Birla said.
Mr. Damodaran said SEBI was in the process of revamping all the regulations to make them simpler. “We will scrap a number of redundant regulations. Some of the regulations will be integrated with others and written in simple language.”
He also said plans were afoot to move on to a modern T+1 settlement system for shares once the banking sector was ready for it.