InvestorQ : Is it true that SEBI plans to change the timelines for open offers and buybacks? What does the change mean?
Neelam Naik made post

Is it true that SEBI plans to change the timelines for open offers and buybacks? What does the change mean?

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Anu Biswas answered.
2 months ago
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SEBI has proposed some changes to the timeline for the process of open offers and for buyback offers. The idea here is to reduce the overall time taken for the completion of this process in the normal course.

As of now, SEBI has only sought comments from stakeholders and the final decision will be based on the feedback received. SEBI has proposed reducing the timeline for completion of open offer from 62 working days to 42 working days and time line for completion of buyback from 43 working days to 36 working days.

SEBI is of the view that with technological advancements in digital and fintech as well as major changes in the manner of tendering and settlement of shares, this was overdue. It was high time to at least review the overall timelines for open offers and buy-back tender offers and ensure that they are not too excessive and to the detriment of the investors and shareholders. This is also expected to make the market more efficient.

There are also other changes proposed by SEBI. It intends to reduce the period for tendering shares in an open offer to 10 working days from date of receiving SEBI comments and the offer will remain open for 5 working days. A similar time line has bene proposed for buybacks too.

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