The Securities and Exchange Board of India (Sebi) on Wednesday proposed exemption from making an open offer for entities whose shareholding in a listed company increases due to forfeiture of shares. Currently, there is no provision for exemptions under the takeover regulations in case of increase in the voting rights of a shareholder due to the expiry of call notice period and forfeiture of partly paid-up shares. Under the new norms, Sebi has proposed "for providing general exemption from the open offer obligations in the cases of increase in voting rights as a result of the expiry of call notice period and the forfeiture of shares in line with general exemptions available with respect to rights issues, buybacks, etc".

Source - http://www.business-standard.com