New norms for co takeovers, bourses to take time:Sebi

Mumbai, Feb 7 (PTI) Market regulator Sebi today said thatnew norms for takeover of companies, as also for ownership andgovernance issues of stock exchanges, would take some time asthey need more deliberations, including by the government.

After a board meeting, Chairman C B Bhave told reportersthat decision on on the new Takeover Code has been deferred.

The Takeover Code relates to changes in a host of regulationsgoverning the merger and acquisitions of listed companies.

Asked about the Jalan Committee report, which hasrecommended sweeping changes in the way stock exchanges andother market infrastructure institutions are owned and run,Bhave said the matter was not discussed at all.

While the Sebi is awaiting some more clarity from thegovernment on the Takeover Code, the regulator is stillcollating the feedback received on Jalan panelrecommendations, he said.

The Takeover Code has been awaiting a clearance for manymonths now and has been discussed in at least three meetingsof the Sebi board, which has representations from thegovernment also, so far without any final decision.

Whenever the government completed its consultations, Sebiwill take decision on Takeover Code, Bhave added.

While Bhave did not specify any reasons for delayin decisions on these two major issues, sources close to thedevelopment said that the government is of the view that thesematters could be best taken up by the next Sebi chief.

Bhave''s three-year term as Sebi chief ends on February 17and he would be succeeded by U K Sinha, chief of fund houseUTI AMC and Chairman of mutual fund industry body Amfi.

Sebi had begun the process of finalising its guidelineson the way bourses are owned and do business, based on thefeedback received on recommendations made by the Jalancommittee on this matter, in January it self.

Sebi had put forth the recommendations made by the BimalJalan Committee for review of ownership and governance normsfor market infrastructure institutions on November 23, 2010and had invited public comments on the same till December 31.

The committee suggested sweeping changes in the way stockexchanges are owned and function and its proposals includecapping their profitability and not allowing them to getlisted to safeguard their front-line regulatory role.

The proposals generated intense debate and opposition hasbeen raised to various proposals including non-listing ofbourses and cap on profitability, terming them as measuresthat would push the investors away. .