Daijiworld Media Network - Mumbai

Mumbai, Dec 18: In a significant step aimed at strengthening India’s corporate regulatory framework, the Securities and Exchange Board of India (SEBI) has proposed sweeping changes to the nation’s mergers and acquisitions (M&A) rules to better protect retail investors and accelerate deal processes.

Under the proposed reforms, SEBI plans to ban acquirers from offering higher prices or preferential deals to major shareholders within six months of an open offer to the public, a practice that has drawn criticism for disadvantaging minority investors. The regulator also aims to reduce the time to conclude open offers from 60 to 30 days, streamline regulatory clearances and mandate external valuations for large private block deals involving major shareholders.

The overhaul addresses concerns raised by past high-profile acquisitions — including preferential pricing controversies — and seeks to align India’s M&A regulations more closely with global norms, enhancing transparency and fairness in corporate transactions. SEBI will shortly invite public feedback on the proposed changes as part of the consultation process.

The move comes amid a surge in M&A activity in India, driven by recent policy changes allowing domestic banks to participate more actively in funding deals and growing foreign investment interest in the Indian market.