On Thursday, the Securities and Exchange Board of India (SEBI) announced that, effective immediately, reports concerning certain exemptions in share acquisitions under the ‘Takeover Regulations’ can now be filed both via email and through its newly launched intermediary portal.
This dual submission mechanism will remain in effect until May 14, 2025, after which all such reports must be submitted exclusively through the SEBI Intermediary Portal (SI Portal). The transitional phase is designed to provide reporting entities ample time to adapt to the new digital system.
Invest in Indian Markets and Unlock Future Potential With 5paisa!Background: Takeover Regulations and Exemptions
Under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, entities acquiring or increasing voting rights through specific exemption routes are required to submit a detailed report. This report must be accompanied by supporting documents and a non-refundable fee. These exemptions help streamline transactions that do not significantly impact public shareholders.
The exemption filings primarily apply to cases such as transfers between immediate relatives and transactions involving promoters who have been listed in the company’s shareholding pattern for at least three years prior to the acquisition. In such scenarios, an open offer to public shareholders is not required, provided all regulatory conditions are fulfilled. These exemptions aim to ease regulatory compliance in low-risk acquisition contexts.
Introduction of the SI Portal
To improve ease of doing business and bring more transparency to the process, SEBI has launched the SI Portal. This platform is intended to simplify the filing process, allow centralized submission and tracking, and minimize paperwork and manual intervention. Reports that previously required email-based submissions can now be managed entirely online through the portal, which SEBI has designed to handle regulatory filings efficiently.
Fee Payments Now Digital
Effective from the date of the circular, all fee payments for these exemption reports must be processed through the SI Portal. This shift to digital payments further supports SEBI’s digitization drive and allows for real-time reconciliation and monitoring.
Industry Response and Expected Impact
Market participants have responded positively to SEBI’s move, citing enhanced efficiency, reduced error margins, and better document management. The SI Portal is seen as part of a broader regulatory transformation, which may eventually encompass other types of filings and interactions between intermediaries and SEBI.
The portal is expected to offer features such as live tracking of report status, automated alerts and confirmations, and document validation at the time of upload. These functionalities aim to reduce processing delays and improve regulatory oversight.
Aligning with Global Best Practices
SEBI’s focus on digital infrastructure reflects a global trend where regulators are leveraging technology for better governance, timely compliance monitoring, and enhanced investor protection. Initiatives like the SCORES platform for investor grievances and online intermediary registration systems are already part of SEBI’s growing digital ecosystem.
Conclusion
By implementing this dual filing approach, SEBI is not only reducing the regulatory burden but also encouraging smoother transitions into a fully digital compliance environment. The new filing mechanism represents a key milestone in SEBI’s ongoing modernization efforts, benefiting both market participants and the regulator in terms of transparency, efficiency, and accountability.
