SEBI hikes promoter holding limit to 75% from 55%
October 27th, 2008
SEBI acts again,
The Securities and Exchange Board of India, or SEBI, has hiked the creeping acquisition limit to 75% from current 55%.
Promoters could earlier not do creeping acquisition beyond 55%. Now, they can buy up to 5% every year till the 75% limit is hit. The market regulator said creeping acquisition beyond 55% will only be through open market normal segment and not bulk deals.
This move has can be seen has positive for the markets and will send positive singles in markets.