SEBI Eyes Mandatory Info Sharing for Open Offers, Curbs on Wilful Defaulters

• SEBI plans to make it mandatory for target companies to share key details and cooperate with acquirers during open offers.
• Current regulations lack this obligation, causing issues when target companies are uncooperative, as seen in a past NBFC case.
• The proposed changes aim to hold the target company's board responsible for information sharing and regulatory compliance.
• SEBI also considers restricting wilful defaulters from making competing offers, citing financial risk and shareholder interest.
• These reforms are part of a review of the Takeover Code Regulations, with a consultation paper expected soon.

Why It Matters: SEBI plans to strengthen Takeover Code by mandating target company cooperation and restricting wilful defaulters.