Daily Current Affairs 2021 Market regulator SEBI reconstitutes Takeover Panel | Daily Current Affairs 2021

Market regulator SEBI reconstitutes Takeover Panel

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Security and Exchange Board of India (SEBI)

Security and Exchange Board of India (SEBI) has reconstituted its Takeover Panel.

Highlights:

  • Panel was constituted in accordance with regulation 11(5) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
  • The takeover panel looks into application that seeks exemption from mandatory open offer which as acquirer needs to make to minority shareholders.
  • It makes its recommendations to Sebi on applications following which SEBI gives an opportunity to concerned parties before passing any order.

Members of the Takeover Panel:

  • The regulator has appointed N Venkatram MD and CEO, Deloitte India as the new member of the Takeover Panel.
  • The panel is chaired by N K Sodhi, former chief justice of high courts of Karnataka and Kerala. He was also the former presiding officer of the Securities Appellate Tribunal.
  • The other members of the panel are Darius Khambata (former advocate general, Maharashtra) and Thomas Mathew T (former chairman of Life Insurance Corporation of India).

Background:

  • SEBI had first constituted a four-member Takeover Panel in November 2007, under chairmanship of former Bank of Baroda chairman K Kannan.

About SEBI:

  • The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the jurisdiction of Ministry of Finance, Government of India (GoI).
  • It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.
  • The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India.
  • The main function of SEBI is to safeguard the rights and interests of the investor, reduce malpractices related to the stock exchange, establishing a code of conduct and promoting the healthy functioning of the stock exchange.
  • It is headquartered in Mumbai, Maharashtra.
  • The current Chairman of SEBI is Ajay Tyagi.

Members:

The SEBI is managed by its members, which consists of the following:

  1. The chairman is nominated by the Union Government of India.
  2. Two members, i.e., Officers from the Union Finance Ministry.
  3. One member from the Reserve Bank of India.
  4. The remaining five members are nominated by the Union Government of India; out of them at least three shall be whole-time members.

Note: Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.

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