SEBI to Bar Premium Payouts for Exiting Promoters Post-Open Offer

• SEBI plans to tighten open offer rules, preventing exiting promoters from receiving higher prices than public shareholders after the open offer period.
• The proposed amendment to Regulation 8(10) of the Takeover Code aims to plug a loophole exploited in past deals.
• A 2022 deal involving an infrastructure group and a New Delhi media house, where promoters received 25% more post-offer, triggered this change.
• Previous proposals to extend the 26-week price differential period faced issues regarding untendered shares and their multiple owners.
• The regulator now intends to completely bar such deals, ensuring fairness and preventing control premiums for promoters post-open offer.

Why It Matters: SEBI is tightening takeover rules to ensure fair pricing for all shareholders, ending premium payouts for exiting promoters.