SEBI mulls shorter timeline for buyback, open offers
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, stated the SEBI paper.
- Mar 25, 2022,
- Updated Mar 25, 2022 7:44 PM IST
The Securities and Exchange Board of India (SEBI) has proposed a shorter timeline for completion of buybacks done through the tender offer route and also open offers.
In a consultation paper released on Friday, the capital markets regulator stated that technological advancements in terms of digital tendering and settlement of shares have made it possible to review the timelines of tender offers.
"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... so as to conclude the same in a more efficient and time bound manner and also to synchronize the timelines of similar activities across all the tender offers, i.e. Open Offers, Buybacks and Delisting Offers, to the extent possible," stated the SEBI paper.
More importantly, the consultation paper highlighted the fact that proposed changes would bring down the overall timeline of an open offers from the current 62 working days to 42. Similarly, the buyback timeline would reduce from 43 to 36 working days.
In terms of the process, the regulator has proposed reducing the current timeline for elements like tendering/bidding window, payment to shareholders and dispatch of letter of offer among other things.
The Securities and Exchange Board of India (SEBI) has proposed a shorter timeline for completion of buybacks done through the tender offer route and also open offers.
In a consultation paper released on Friday, the capital markets regulator stated that technological advancements in terms of digital tendering and settlement of shares have made it possible to review the timelines of tender offers.
"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... so as to conclude the same in a more efficient and time bound manner and also to synchronize the timelines of similar activities across all the tender offers, i.e. Open Offers, Buybacks and Delisting Offers, to the extent possible," stated the SEBI paper.
More importantly, the consultation paper highlighted the fact that proposed changes would bring down the overall timeline of an open offers from the current 62 working days to 42. Similarly, the buyback timeline would reduce from 43 to 36 working days.
In terms of the process, the regulator has proposed reducing the current timeline for elements like tendering/bidding window, payment to shareholders and dispatch of letter of offer among other things.