Sebi allows stock exchanges mechanism for tender offers under takeovers, buy back and delisting

Stock exchanges to provide a separate window called Acquisition Window

Stock market regulator Securities and Exchange Board of India (Sebi) has allowed tendering and settlement of shares through the stock exchange mechanism with respect to takeovers, buy back and delisting. The facility for acquisition of shares through the stock exchange mechanism pursuant to offer shall be available on the stock exchanges having nationwide trading terminals in the form of a separate window called Acquisition Window, Sebi said in a circular issued yesterday, 13 April 2015. Sebi said that this circular shall be applicable to all the offers for which Public Announcement is made on or after 1 July 2015. For all impending offers, acquirer/promoter company shall have the option to acquire the shares through the stock exchange mechanism or the existing one.

In case an acquirer or any person acting in concert with the acquirer who proposes to acquire shares under the offer is not eligible to acquire shares through stock exchange due to operation of any other law, such offers would follow the existing 'tender offer method'. In case of competing offers under Regulation 20 of the Takeover Regulations, in order to have a level playing field, in the event one of the acquirers is ineligible to acquire shares through stock exchange mechanism, then all acquirers shall follow the existing 'tender offer method', Sebi said.

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