The Singapore government will benefit from relaxed sovereign fund rules in India, Economic Times reports. The sovereign funds, Temasek Holdings and the Government of Singapore Investment Corporation (GIC), managed by the Singapore government, will be allowed to acquire up to a 20% stake in a listed Indian company. The funds will not even have to make an open offer to existing public shareholders.
As per the Indian takeover rules, an entity is required to make an offer to buy a minimum 20% if it’s holding touches 15%. Other funds from countries, including China, Oman and Malaysia, will not get such benefits. The proposal to exempt sovereign wealth funds was in accordance with an economic co-operation treaty that India has signed with Singapore.
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