Decoding the Control Conundrum under the Takeover Regulations: Mandatory Bids Intricacies

Nehal Ahmad Nadwi*

Published on February 13, 2022 | Manuscript Number: 2022/LWLR/13044 | Page Numbers: 44-51

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Abstract: The concept of control is discussed in the Companies Act 2013, the Competition Act 2002, and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. However, the author will prefer to discuss the concept of control in the light of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. The qualitative and quantitative aspect of control in the light of mandatory bids is extensively debated by scholars and policymakers. In fact, the adjudicators seem to have failed in conclusively determining the concept of control. It is alarming that the consequential damage due to the strict quantitative and qualitative threshold is far more serious. One of the questions this paper seeks to address is whether the TRAC’s recommendations in the form of a 25% numerical threshold are correct for adding the degree of objectivity and consistency for determining the concept of control? Eventually, a germane approach is discussed in order to tackle the issue.

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Keywords: Takeover Code, Mandatory Bid, TRAC, SAT, SEBI.

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*Assistant Professor, Sandip University, Nashik; LLM, National Law School of India University, Bangalore

Cite as: Nehal Ahmad Nadwi, Decoding the Control Conundrum under the Takeover Regulations: Mandatory Bids Intricacies (2022) 1(3) LKO. L. REV. 44