This Article describes how takevercode.com , a webiste based on takeover laws in India, has changed the way laws are complied in India

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M & As On the Web
Outlook Business : October 30, 2010 issue
Outlook Business :
October 30, 2010
PAVAN KUMAR VIJAY
MANAGING DIRECTOR, CORPORATE PROFESSONALS
The Securities and Exchange Board of India (SEBI) is giving the final touches to
its new takeover code after receiving public comments on the draft version. While
the corporate world braces for the new norms, the promoter of Takeovercode.com
is eagerly waiting for the amendments to become law. The portal is a venture of
Corporate Professionals (India), a Delhi based corporate legal consultancy. Pavan
Kumar Vijay, its Founder and MD, cites the complex merger and acquisition (M&A)
regulation as the reasons for launching the website. "The Law has only 45
regulations but 450 interpretations," he says. "The Legal Field is
Takeovercode.com has been helping India Inc comply with the existing takeover
considered a dry
law since July 2008. "Change in the law should bring many more people to our area but we were
website," says a hopeful Vijay. The site is not merely a legal database - it is also an
instant compliance solutions provider.
trying to make it
Takeovercode.com glamorous"
aims to be a one - stop Vikram Rathi Chose to go the cyber way when he had to transfer shares. The
Executive Director of BLB (a stockbroking company) used one of the 20
shop for online calculators on the site to comply with the takeover code. The calculators can be
corporate compliance used to generate a variety of solutions. For instance if a promoter wants to
solution related to
increase his shares in a listed company, he just has to feed in details of his €
planned transaction. A few clicks and, presto, the relevant section of the law and a
mergers and letter ready to be sent to Sebi appear on the screen.
€
acquisitions. "It is like a running advisor. You can gain an understanding of 90% of takeover-
related issues on your own. For specific problems, you need to call the
consultant", "says Alok Tandan, MD, Shyam Telecom.
Many Clients used the free services first and then decided to avail offline services
like open-offer strategy preparation, corporate restructuring and due diligence.
"We were using TakeoverCode.com and then decided to engage them further for
physical services." Says Saurabh Jain, Company Secretary, Lumax Autotech,
Delhi.
Starting Up
Vijay, a law graduate and Company Secretary by training, served with Gwalior
Strips and BLB for 13 years before launching Corporate Professional in 2003. He
also became one of the youngest Presidents of the Institute of Company
secretaries of India (ICSI) in 2003 at age of 38. He took to IT like a duck to water,
right from its advent in India. "I have been using computers since 1984,' he claims.
Vijay Pushed for Computerisation during his stint as president of ICSI.
TakeoverCode.com was a direct result for his weakness for all things digital and a
sound grounding in a law. The seed capital of Rs.10 lakh came from the personal
savings. The project had its share of initial difficulties. To being with, his team had
little confidence in it. "A lot of time went into explaining that this model can create
wonder in future," says Vijay. "The legal field is considered a dry area but we are
trying to make it glamorous", he explains.
The portal was launched by then SEBI Chairman CB Bhave and enrolled CAs, CSs,
and merchant bankers as members, but traffic was initially slow because of the
financial meltdown in 2008. "Restructuring activity almost ceased during that
period and this affected the site as well," admits Vijay. Well, TakeoverCode.com is
back on its feet. It has 35,000 members today. The initial team of three people has
grown to 10 members. However maintenance entails regular expenditure. Vijay
says he has spent Rs 2 crore on the site to date.
The business model also underwent some changes. The original plan was to
launch it as a subscription-based website. But Vijay soon discovered that paid
doesn't work well in India. So the services were offered free to attract more users
and to showcase other projects from the consultancy. Since then, Corporate
Professionals has launched three more websites LLPonline.in (Limited Liability
Partnership), Delisting.in and StartBizIndia.in (Compliance solutions to start a
business in India.)

2. Takeover Code is already a moneyspinner for Corporate Professionals. The firm's
takeover law portfolio generates Rs. 2-3 crore a year. “Nearly 60% of our
business comes from the website", Says Vijay.
Challenges And Future
TakeoverCode's major challenges, according to Vijay, are updation and
maintenance, changing technology and security, all of which come at a huge cost.
But, for Vijay. The website is merely the first step in a long journey. "We want to
launch similar websites on variety of subjects." he says. Sites for the Foreign
Exchange Management Act and Companies Act are ready. A one stop compliance
portal for directors in the corporate world is in the offing. He is confident that
users will shift to the paid model once all the sites are in place. Mobile Phone
application is also an area the company is working on.
The portals closest rival is MergersIndia.com, which receives around 127 visits a
day on average, in comparison with Takeover Code 569.
The long term vision is to "take the entire consultancy online", says Vijay, as that
will improve efficiency and lower costs.
Pradeep Bhojwal from IndLaw.com (a Thomas Reuters venture) believes there is a
huge opportunity in this arena. "On line law sites have largely served metros so
far; a large customers base is still untapped," he explains. However, Bhojwal is
cautious about whether the entire legal consultancy can go online in the near
future, as "authenticity issues" are involved.
Priyanka, Chief Operating Officer of Manupatra.com is more optimistic. She feels
full-fledged online consultancy may be possible in the future, after IT expands to
every facet of daily life.
Given how IT is continually revolutionising our lives, that day may not be far away.
And when it comes, TakeoverCode.com is sure to be at the vanguard in providing
M&A services online.
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