i Develop Stocks Advisory

SEBI allows creeping acquisition beyond 55 per cent The measure is expected to boost the market sentiment as promoters will be tempted to resort to creeping acquisition given the current depressed prices of their shares. Hiterto, creeping acquisition, the process through which promoters can increase their stake in the company by buying upto five per cent of the company's equity in a year, was allowed only till the promoters holding reached 55 per cent of the equity of the company. SEBI on Monday said as part of consolidation of holdings under Takeover Regulations, it would allow creeping acquisition beyond 55 per cent but upto 75 per cent via open market purchases in the normal segment. However, consolidation via bulk, block or negotiated deals or through preferential allotment would not be permitted. Besides, the market regulator has also said that henceforth promoters would not require permission if their holding in the company were to increase by five per cent in the event of a buyback of shares. "It has now been decided to automatically exempt increase/ consolidation upto 5 per cent per annum as a result of buy back by a company," a press note by SEBI said.