On 16 August, SEBI issued rules for acquisition of shares, takeovers.
- Acquisition of shares by lenders in debt restructuring implemented by guidelines.
- Share acquisition via allotment by target company or purchase from lender made
when selling shareholding, change under an approved debt restructuring scheme.
- Acquisition by share purchase from lender, exempt subject to specified conditions.
- The purchase price has been determined in accordance with guidelines set by RBI.
- Purchase price certified by two independent qualified valuers, registered in S. 247.
- Specified securities purchased are locked-in at least three years of purchase date.
- Lock-in equity shares acquired per conversion, of convertible securities purchased
from lenders will be reduced to the extent convertible securities already locked-in.
- A special resolution was passed by shareholders of the issuer before the purchase.
- Issuer to disclose information on the proposed acquirer, in explanatory statement.
On 17 August, BaFin issued statement on investing in IIPs per MiFID.
- MiFID and PRIIP have created a new form of insurance-based investment product (IIP).
- Whether insurance contract qualifies as IIP will be decisive for the regulation applicable.
- Insurance products will need basic information sheet produced in accordance with PRIIP.
- BaFin classifies IIPs in the German market as all capital forming life insurance products.
- Classification of IIP is independent of whether premium is paid continuously or one-off.
- But annuity insurance with or without possibility to withdraw are not classified as IIPs.
- Products which do not offer the prospect of a capital appreciation will also not be IIPs.