Sebi to Tighten Open Offer Rules, Protect Minority Shareholders

• Sebi plans to tighten Open Offer rules, potentially banning takeover deals allowing promoters to exit at higher prices post-offer.
• The regulator may amend the takeover code, specifically Regulation 8(10), based on a committee's suggestion.
• Proposed changes aim to prevent negotiated deals (block/bulk) at prices higher than the open offer price after the offer closes.
• This move is prompted by a 2022 deal where an infrastructure group bought shares from a Delhi-based media house at a 25% higher price post-open offer.
• The goal is to address loopholes, ensure fairness, and protect minority shareholders by potentially extending the compensation period.

Why It Matters: Sebi aims to amend Open Offer rules to ensure fair pricing and protect minority shareholders from exploitation.