Procedures for mergers streamlined

Mumbai: The capital markets regulator on Wednesday eased some norms for listed companies undertaking "schemes of arrangement" such as mergers and demergers, including those involving their subsidiaries and their divisions.

The Securities and Exchange Board of India (Sebi) has relaxed the requirements related to disclosures, lock-in of shares by promoters and listing related compliance requirements.

According to Sebi, the move is aimed at expediting the process of draft schemes. The decision has been taken after it received representations suggesting improvements to the existing regulatory framework.

The listed entities are no longer required to submit certain documents to the stock exchanges following the sanction of the scheme by the High Court or National Company Law Tribunal (NCLT).

Meanwhile, in a separate move, Sebi has revised the transaction charges levied on commodity derivatives trade.


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