The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the “Takeover Code”) and The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) are 2 important regulations which are to be complied with by the company during an acquisition or merger.
The listed companies shall ensure that the scheme does not violate, limit or override any of the provisions of the applicable securities law or requirements of the stock exchanges.
The listed companies are required to file the pre- and post-arrangement shareholding pattern and the capital structure with the stock exchanges as per requirements of the listing authority or stock exchanges of the home country in which the securities are listed and also needs to disclose to the stock exchanges all information having a bearing on the performance/operation of the listed entity and/or price sensitive information.