Business Times

SEC prepares takeovers-mergers law

The Securities and Exchange Commission (SEC) is in the process of incorporating public comments in the proposed Takeovers and Mergers (TOM) Code, SEC officials said. “We’re trying to add comments we got from the public,” an official told The Business Times.

Meanwhile, the industry is calling for a simpler TOM code, than the one which is drafted, saying that it is two complicated and at some instances raises questions. “The main grouse that many are lamenting about is inclusion of monitoring indirect takeovers firms and they say that the SEC is not in a position to monitor takeovers of British Virgin Islands (BVI) incorporated companies,”a corporate lawyer who did not wish to be named told the Business Times.

He added that a TOM panel is also proposed in the draft code, where conflict of interest is a serious issue as the panelists who will sit at the TOM panel will (there’s a high probability) be connected parties (as Sri Lanka is a small country). “Also the skill set required for this isn’t available,” he added, saying that maybe the new code is ahead of its time.

He also said that the new code requires many formalities with regard to an initial public offering by a firm. “There’s a set of compliance guidelines and one is required to audit the offer document, which all adds up to cost,” he noted.

In defense, SEC officials say that most deals which involve TOMs are equally complicated. “What’s been drafted is with international standards. We cannot wait for the share market to be better developed. We need to be on apart with international; standards when it’s more developed than this,” an SEC official said.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
New law to replace BOI Act
Value is key for SL over others: Taj Hotels MD
CB to relax exchange control rules
Top securities regulator visits Colombo
Budget: Growth with equality-urges Colombo business leader
Sri Lanka to consider reptile exports to Germany
Comment -Budget: Onus on taxes
Feature - Friday Forum outlines the path to national unity and reconciliation
Tourism strategies at provincial level
CPM annual conference slated for October 11
Gotabaya outlines war-winning strategy now applicable for economic war
250,000 computers dumped in Sri Lanka every year
India setting up 1,500 universities, China creates one every week
Design for economic growth
Leo Burnett’s Ranil wins a Global Medal of Merit from IAA
Lankaputhra Bank’s non-performing loans increase
Saberion offers alternative to commission based bookings
Janashakthi introduces Sri Lanka’s first 24-hour vehicle breakdown policy
Phoenix Jt. MD at O&M New York
Add 1% for North / East development in 2011 budget: Business leader
US Business Leaders meet President in NY
Central Bank $1 bln bond offer exceeds $6 bln in 14 hours
SLT's IPTV investment and ADSL services
Sri Lanka to use nuclear energy for commercial purposes
Agni Capital leads in driving foreign investments to SL
Fitch revises SLT outlook
Dedicated IPR UNIT of CID soon
Central Bank directs The Finance Company to seek new investors
Government introduces new procurement procedure for state institutions
Plenty Foods wins silver award at Farmer awards event
Ceylinco Life to present Rs 8.4 mln in new scholarships at 10th Pranama event
Sri Lanka's first 3D mobile game 'Colombo Ride 3D' opens in Oct.
Costs from interest free credit cards offers come from merchant’s commissions
Shortage of shares in Colombo market prompts SEC action
Microsoft EDI system for Brandix and Marks & Spencer
Eagle Logistics turns five
Dilmah founder felicitated as 2010 Brand Icon
Mandatory deposit insurance, drop in performing loan loss provisions by CB
Multi Finance to list on the Colombo Stock Exchange
Stepping up on Corporate Governance practices key to investment
SEC in a move to bring commodity exchange, exchange traded funds, unit trusts in 2010
CSE boom hasn’t reached remote areas; banks still rule
SEC prepares takeovers-mergers law
SEC wants to harmonise regulation with the region
SEC, CB rules bring in new business for banks
Hayleys and employees donate IT Centres to Northern schools
SMB Leasing to raise Rs 581 million from rights issue
NDB Bank launches an island-wide Savings Drive


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution