Comment on the following statement: Acquisition pursuant to a scheme made under section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 or any statutory modification thereto shall be automatically exem

The statement is partially correct and partially incorrect . Under Regulation 10 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, certain acquisitions are exempt from the obligation to make an open offer under Regulation 3 and Regulation 4, subject to fulfillment of stipulated conditions. One such exemption is for acquisition pursuant to a scheme made under section 18 of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) or any statutory modification or re-enactment thereto. This part of the statement is correct. However, the statement that 'not the acquisition made pursuant to the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)' is incorrect . Acquisitions made pursuant to the provisions of the SARFAESI Act, 2002, are also exempt from the obligation to make an open offer under Regulation 10, provided certain conditions are met. Therefore, both types of acquisitions mentioned (under SICA and SARFAESI Act) are generally exempt from open offer obligations under the SEBI (SAST) Regulations, 2011.