Sebi extends relaxation in procedural requirements for open, buyback offers
New Delhi: Markets regulator Sebi on Monday extended relaxation in procedural requirements for listed entities with respect to open and buyback offers till December 31 amid coronavirus pandemic.
The regulator, in May, had granted one-time relaxations from strict enforcement of SAST (Substantial Acquisition of Shares and Takeovers) Regulations and norms for buyback of securities through open and buyback tender offers opening till July 31.
“Based on representations received from the market participants, the validity of relaxations…is further extended and shall be applicable for open offers and buy-back through tender offers opening up to December 31, 2020,” the Securities and Exchange Board of India (Sebi) said in a circular.
Under the relaxation, service of the letter of offer, tender form and other offer related material to shareholders may be undertaken by electronic transmission as already provided under the takeover and buyback regulations.
This relaxation is subject to certain conditions, including that the acquirer or the company would have to publish the letter of offer and tender form on the websites of the company, registrar, stock exchanges and the manager to offer.
Besides, the acquirer or company along with lead manager need to undertake all adequate steps to reach out to the shareholders through other means such as ordinary post or SMS or audio-visual advertisement on television or digital advertisement.
Among others, the acquirer will have to make an advertisement containing details regarding the dispatch of the letter of offer electronically.
The acquirer may have the flexibility to publish the dispatch advertisement in additional newspapers, over and above those required under the respective regulations.
The buyer should also make use of advertisements in television channels, radio and internet to disseminate information relating to the tendering process. Such advertisements can be in the form of crawlers or tickers as well.
All the advertisement issued should also be made available on the website of the company, registrar, managers to the offer, and stock exchanges.
The acquirer and manager to offer need to provide procedure for inspection of material documents electronically.