OPEN OFFER OBLIGATION: INDIRECT ACQUISITION

SEBI clarifies the exemption from the obligation of making an open offer, available under the Takeover Code for inter-se transfer of shares amongst a promoter and its immediate relatives, in an informal guidance. Cases involving indirect acquisition of shares of the target company by transfer of shares of the promoter entity that results in a change of control do not qualify for an automatic exemption from the open offer obligation. INDUSLAW's Ravi Dubey and Sakshi Sharma discuss the way forward for the scope of inter-se exemption under the Takeover Code.