Sebi scraps Ā“ brightlineĀ“ control test proposal The Securities and Exchange Board of India (Sebi) on Friday said it has dropped the proposal of adopting the ābrightline testā to determine acquisition of ācontrolā. In March 2016, the market regulator had floatedadiscussion paper on ābrightline tests for acquisition of Ā“controlĀ“ under Sebi Takeover Regulationsā. The brightline test isadifferent approach to defining control, which prescribesalist of protective rights which do not amount to acquisition of control. The current framework, is largely formulaebased, with one of the criterion being acquisition of 25 per cent stake or voting rights. Determining change of control is critical as it triggers an open offer to the public shareholders. āThe relevant issues have been examined intensively and in view of the aforesaid comments received and considering the current regulatory environment, it has been decided to continue with the practice of as...