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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Meru Textiles Ltd makes a public announcement under the SEBI Takeover Regulations to acquire shares of Tapti Mills Ltd without Tapti's consent. Tapti's board has executed no document. For the purpose of the notice requirement under section 6(2), what is the position?

The public announcement under the SEBI Takeover Regulations is treated as an 'other document' for section 6(2), so it triggers the obligation to notify even without the target's consent. Notice must be given before consummation, not after completion.

  1. ANo triggering event has occurred until Tapti's board consents
  2. BThe public announcement made under the SEBI Takeover Regulations counts as an 'other document' conveying the decision to acquireCorrect
  3. COnly a share purchase agreement signed by both parties can trigger notice
  4. DNotice is required only after the acquisition is completed

Explanation

The Explanation to section 6(2) treats as 'other document' a public announcement made under the SEBI Takeover Regulations for acquisition of shares, voting rights or control, and also covers documents executed by the acquirer where the acquisition lacks the target's consent. Hence the announcement triggers the filing obligation.

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