SEBI relaxes compliances pertaining to open offers and buy-back tender offers opening upto 31 July 2020
May 15, 2020
SEBI has granted a one-time relaxation from compliances under the SEBI (SAST) Regulations 2011 and the SEBI (Buyback) Regulations 2018 pertaining to open offers and buy-back tender offers opening upto 31 July 2020.
The service of the letter of offer and/or tender form and other offer related material to shareholders may be undertaken by electronic transmission, as is already provided under Regulation 18(2) of the Takeover Regulation and Regulation 9(ii) of Buyback Regulations, subject to the following :
The letter of offer and tender form must be published on the websites of the acquirer/company, registrar, stock exchanges and the manager(s) to offer.
Adequate steps be taken by the acquirer/company along with the lead manager(s) to reach out to shareholders through other means such as ordinary post or SMS or audio-visual advertisement on television or digital advertisement, etc.
The acquirer/ company shall make an advertisement, containing details regarding the dispatch of the letter of offer electronically and availability of letter of offer along with the tender form on the its websites, in the same newspapers in which (i) detailed pubic statement was published as per regulation 14(3) of Takeover Regulations or (ii) public announcements was published as per regulation 7(i) of Buy-back Regulations. The advertisement may also be placed in additional newspapers and on television channels, radio, internet, etc. and be made available on the website of the company, Registrar, Managers to the offer, and Stock Exchanges.
A procedure for inspection of material documents electronically must also be provided by the acquirer/company and the manager.
To refer to the SEBI circular dated 14 May 2020, click here.
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