Recent Amendments by SEBI

SEBI in its board meeting dated 18^th January 2013 made the following amendments –

Changes in Offer for Sale Mechanism

Offer for Sale is one of the mechanism allowed by SEBI for the Promoters to off load there shares in order to meet the minimum public shareholding criteria. In order to make it simpler following changes have been made for Institutional Orders –

Conditions for 100% Upfront Margin Orders	·         Institutions may place orders/bids with 100% upfront margin ·         Modification/cancellation of such orders/bids shall be permitted ·         Settlement of funds and securities shall take place on T+1 day
Without Upfront Margin	·         Institutions may place orders without upfront margin in line with secondary market practice ·         Such bids cannot be modified/cancelled ·         Upward revision in the price or quantity is permitted

Amendment to SEBI Takeover Regulation

Relevant Date for PA in case of combined modes of acquisition	Where open offer obligations are triggered in combination of ay modes of acquisition the relevant date shall be the earliest date on which the obligations are triggered
Relevant Date in case of Preferential Allotment	The date of Board Resolution authorizing the preferential allotment shall be the relevant date instead of date of special resolution
Aligning disclosure requirements with SEBI (Prohibition of Insider Trading) Regulation	Disclosure requirement with regard to buy or sell two percent  by persons holding more than five percent as specified in Takeover Regulations, 2011 shall be modified in line with SEBI (Prohibition of Insider Trading) Regulations, 1992
Clarification on period of 90 days for increase in voting right due to buy back	It has been clarified that the period of 90 days will be reckoned from the date of closure of buyback offer.

Note: There are various other changes apart from those mentioned above. However the above changes are the most significant one.

Amendment to Section 15M of SEBI Act

The Cabinet has approved the proposal made by the Department of Economic Affairs to amend Section 15M of the SEBI Act 1992 to enlarge the field of selection for the post of Presiding Officers (PO) of the Securities Appellate Tribunal (SAT) by including a sitting or a retired judge of a High Court with a minimum experience of 7 years as one of the qualification.

Amendment to the SEBI Act, 1992 will be done on the lines of the approved ordinance and a Bill will be introduced in the ensuing session of the parliament to replace the Ordinance in consultation with the Legislative department.

Currently following are elligible to hold the post of PO -

• Sitting or Retired judge of Supreme Court
• a sitting or retired Chief Justice of a High Court