Mar 31, 2022

SEBI Consultation Paper on Streamlining Timelines for Open Offers and Buy-back Tender Offers

Considering technological advancements and changes made in the manner of tendering and settlement of shares, SEBI issued a consultation paper, dated March 25, 2022 (‘Consultation Paper’), proposing review of timelines under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘Takeover Code’) and the SEBI (Buy-Back of Securities) Regulations, 2018 (‘Buy-Back Regulations’), whereby overall timelines for completion of open offers would be reduced from 62 to 42 working days and for buy-back offers would be reduced from 43 to 36 working days. In order to conclude such offers in a more efficient and time bound manner, SEBI has proposed that the tendering period may remain open for five working days, as opposed to the current tendering period of 10 working days and that since the settlement of transactions for shares sold on the floor of the stock exchange occurs within two working days, the period for payment of consideration to the shareholders who have tendered their shares in open offers be reduced to five working days, as opposed to the current period of seven working days.




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