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Easing the process of tendering shares by investors in the case of takeovers/ buybacks/ delisting of shares using the stock exchange mechanism, SEBI has decided to allow transfer of shares directly to the account maintained by the clearing corporation (of the stock exchange providing the window for the offer, for instance, ICCL in case of BSE).
After the shares have been transferred, the clearing corporation would use these shares for settlement under these offers (takeover/ buyback/ delisting).
The money for the shares accepted under the offer would be credited directly to the investor’s bank account and the shares not accepted would be returned to the investor’s demat account.
The revised procedure would be applicable for takeovers/ buybacks/ delisting offers whose public announcements are made on or after January 2, 2017.
Currently, shareholders submit their bids through stock brokers who then transfer the shares to the special account of the clearing corporation. Similarly, money payable to shareholders for the shares accepted in the offer are routed through stock brokers. Also, the shares not accepted in the offer are returned to shareholders through the stock brokers.
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