The Security and Exchange Board of India on 1st July 2020 has published the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Third Amendment)Regulations, 2020.
The Amendment is brought under regulation 17 which deals with provision to escrow under which, in sub regulation 1, new proviso shall be inserted which provides that, in case of indirect acquisitions where public announcement has been made, an amount equivalent to hundred per cent of the consideration payable in the open offer shall be deposited in the escrow account.
Provided further that the deposit of securities shall not be permitted in respect of indirect acquisitions where public announcement has been made in terms of clause (e) of sub-regulation (2) of regulation 13 of these regulations.
Further, under regulation 18(11) in case, the acquirer is unable to make payment to the shareholders who have accepted the open offer within such period, the acquirer shall pay interest for the period of delay to all such shareholders whose shares have been accepted in the open offer, at the rate of 10% per annum.
Provided that in case the delay was not attributable to any act of omission or commission of the acquirer, or due to the reasons or circumstances beyond the control of the acquirer, the Board may grant a waiver from the payment of interest.
Provided further that the payment of interest would be without prejudice to the Board taking any action under regulation 32 of these regulations or under the Act.
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