Debt ridden stock top gainers

SEBI yesterday relaxed some rules related to their takeover and restructuring in the case of distressed companies. These rules are expected to help companies get new buyers and will also allow banks to sell its distressed assets easily.

As per the new norm, SEBI has exempted buyers of shares in distressed companies from the requirement of making an open offer even if the purchase triggers such an event under the takeover code. This exemption has to be approved by a special resolution where at least 75% shareholders vote in favor. SEBI has also stipulated that the shares bought by the new investor will also be locked in for at least three years.

SEBI has also gone ahead and stated that it will grant similar exemptions for those firms which have got their resolution plans approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).

Based on this news, the stock market has jumped to new highs and all the top gainers on the BSE are debt ridden companies. JP Associates is the top gainer, up currently almost 13% at rs.17.37; GVK Power is up 11% at Rs.7.26; Amtek Auto is at Rs.30.95, up 10%; Reliance Defence is up 6.5% at Rs.60.50 and Unitech is up 6% at Rs.5.30.