New takeover code by February end -- Mehta

New takeover code by February end -- Mehta
PRESS TRUST OF INDIA

CALCUTTA, DEC 18: "Our policy on takeover code will be fairly simple that it should be a legitimate entity provided it is used within the core parameters. It helps investors and is the best option in their hand. The code also helps companies restructure itself," Mehta said.

The Bhagwati Committee appointed to recommend changes in the takeover code is likely to submit its report by middle of February next year and a final draft would be ready by end of that month or latest by first week of March, Mehta said.

He, however, said all the pending cases would be decided as per the existing code. "We are changing the regulations so that it could of more use to investors," he said.

Mehta said investors hardly get any benefit from acquisitions which also puts pressure on the promoters. "We have to strike a balance so that investors' interests are protected."

The SEBI chairman said since the takeover code was introduced in 1992, about 600 companies opted for it and investors gained about Rs 4500 crore.

About the delay by the committee on submitting its report on takeover code, Mehta said "It is a new area and the committee is looking at its various aspects."