Takeover code: SEBI may raise open offer trigger limit to 25%

Securities and Exchange Board of India (SEBI) is likely to decide on thetakeover code of listed companies in its board meeting on Thursday. The market regulator, in the meeting, may also reopen a probe against National Securities Depository (NSDL) in the multi-crore initial public offer (IPO)) scam between 2003 and 2005, when thousands of retail investors were cheated as various entities opened thousands of demat accounts in fictitious names. SEBI will consider the proposals of the takeover committee, headed by C Achuthan, former presiding officer ofSecurities Appellate Tribunal (SAT), which suggested the increase in the open offer trigger limit to 25% from 15% and raising the open offer by acquirer to 100% from the existing 20%. The regulator is expected to go along with the panel's recommendation to raise the open-offer trigger limit, but may not mandate acquirers to make an open offer for all the public shareholding, lawyers and investment bankers said.