InvestorQ : When banks like SBI and ICICI Bank invest in Yes Bank, will they have to make an open offer to shareholders as per SEBI regulations?
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When banks like SBI and ICICI Bank invest in Yes Bank, will they have to make an open offer to shareholders as per SEBI regulations?

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11 months ago
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There have been some related developments on that front. The Ministry of Corporate Affairs (MCA) has exempted banks placed under moratorium from the purview of CCI merger regulations. The move comes in the wake of SBI’s planned bailout of Yes Bank. The notification said the move was “in public interest” and hence for an effective period of five years the exemption will be valid. It may be recollected that CCI regulates mergers to ensure that reduction in the number of players in an industry does not stifle competition in the market. This benefit is being given as a special case. Since this special exemption on CCI has been given, one can assume that they would also apply to the SEBI for exemption from making an open offer. The open offer exemption has already been made for NCLT related acquisitions to protect the interests of the acquirer. Moratorium buying may also be taken as a special case.

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