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SEBI Mulls Cutting Down Timelines For Open, Buyback Offers

SEBI is planning to scale back timelines for open and buyback presents

New Delhi:

To scale back the general time taken for the completion of open and buyback presents, markets regulator Securities and Exchange Board of India (SEBI) has steered modifications within the timelines for procedural actions, together with a lesser time interval for tendering shares.

The proposed modifications would convey down the general time taken for completion of open presents to 42 working days from the present 62 working days, whereas within the case of buyback presents, the time interval will scale back to 36 working days from 43 working days at current.

According to the regulator, the modifications can be “investor-friendly and make the process more efficient”.

In this regard, the watchdog has issued a session paper, and public feedback have been sought on it until April 15.

“Considering the technological advancements in digital and fin-tech and changes made in the manner of tendering and settlement of shares, a need was felt to review the overall timelines for procedural activities, including the duration of the tendering period, involved in the open offers and buy-back tender offers,” it stated.

Further, SEBI famous that the modifications would additionally assist conclude the presents in a extra environment friendly and time-bound method and to synchronise the timelines of comparable actions throughout all of the tender presents to the extent potential.

Among different modifications, the regulator has proposed the interval for tendering shares in an open provide to 10 working days from the date of receiving feedback from SEBI and would stay open for five working days.

“Considering that the same is being proposed in case of open offers, we may implement the same in buyback offers also. Therefore, it is proposed that tendering period may remain open for five working days,” as per the session paper issued by it.

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