Photo of Manita Doshi

Partner in the General Corporate Practice at the Ahmedabad office of Cyril Amarchand Mangaldas. Manita advises on a full range of corporate matters, including mergers & acquisitions, with particular focus on transactions involving listed companies. She can be reached at manita.doshi@cyrilshroff.com

Schemes and the Amendment to the Takeover Regulations

Schemes of arrangement have been a favoured route for corporates to acquire shares of listed companies, given the many obvious pros of acquisitions undertaken through a court/ National Company Law Tribunal (NCLT) based scheme of arrangement. Schemes have also been used to undertake group level restructurings, a consequence of which could be the indirect transfer of shares of a listed company from one group company to another.

One of the biggest advantages of acquiring shares in, and/or control over, a listed company pursuant to a scheme of arrangement is that such an acquisition is exempt from the requirements of making a mandatory open offer under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Regulations), subject to certain conditions being met.
Continue Reading Schemes and the Amendment to the Takeover Regulations: A Step Backwards?