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Dear
Members
Indian bourses scaled 29-month highs and closed at 18,103 points on 23rd July, 2010. Continued foreign buying in the domestic market, strong macroeconomic scenario backed by revival in monsoon and decent first
quarterly earnings has enabled the domestic market to appreciate.
RBI will now allow take-out financing through external commercial
borrowing for refinancing of rupee loans availed from domestic banks.
A committee set up by SEBI has recommended major changes in the existing law governing substantial acquisition of shares and takeovers.
1.
Have recommended an increase in the acquisition threshold for the initial trigger
of an open offer from the current level of 15% to 25% of the voting capital of a listed company
2.
No change in the annual creeping acquisition limit of 5%. Creeping acquisition be permitted only to acquirers who already hold more than 25% of the voting capital, subject to the aggregate post-acquisition shareholding not exceeding the maximum permissible non-public shareholding
3.
An open offer should be made for all the shares of the target company to ensure equality of opportunity and fair treatment of all shareholders, big and small. The only exception to this rule is the size of an open offer where the same is voluntary in nature. The current regulations mandate a minimum offer size of only 20%
We eagerly await your nomination for the forthcoming South Africa trip. It would be great to have you all as part of the delegation. Please confirm your nominations to Mr. Ajit by 30th July, 2010. We shall try our best to make it a memorable one.
With best regards
V. Ganesh
Chairman – RAIN
www.rainnet.org
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