Open offer exemption: No open offer exemption without IBC: Sebi – The Economic Times

The regulator’s move to deny such open offer exemptions will affect companies looking to restructure their debt.

Companies and investors looking to buy firms, whose debt restructuring exercise is not under the insolvency rules, will not get exemptions from open offer to public shareholders, a move that comes as a setback to Jet Airways’ revival plan. This, along with a raft of decisions such as allowing mutual funds in commodity derivatives, tightening valuation norms for debt mutual funds and granting permanent registration to custodians, among others, were taken by the Securities and Exchange Board of India (Sebi) in its board meeting on Friday that was addressed by finance minister Arun Jaitley.

The regulator’s move to deny such open offer exemptions will affect companies looking to restructure their debt. Sebi’s decision could make it tough for Etihad Airways to up its stake in Jet Airways.

The new rule is not applicable to lenders.