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Article: INDIA'S SEBI ASKS MERGING FIRMS TO SHARE EQUITY VALUATION REPORT.
- Article from:
- AsiaPulse News
- Article date:
- September 8, 2008
CopyrightCOPYRIGHT 2008 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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MUMBAI, Sept 8 Asia Pulse - In order to safeguard the interest of shareholders of the merging companies, Indian market regulator SEBI on Friday made it mandatory for entities to share the merchant bankers' fairness report on equity valuation with the shareholders.
"The fairness opinion (report) of the merchant bankers shall be made available to the shareholders at the time of approving the (merger) resolution," SEBI said while amending the clause 24 of the listing agreement.
Under clause 24, listed as well as an unlisted companies, which are getting merged, are required to obtain fairness opinion on valuation of shares by an independent merchant banker.