SEBI plans to shorten the deadlines for open buyback offers


The regulator intends to reduce the total time for closing tender offers to 36 working days

The regulator intends to reduce the total time for closing tender offers to 36 working days

In order to reduce the overall time for the completion of open offers and buyback offers, market regulator SEBI has proposed changes to the deadlines for procedural activities, including a shorter deadline for tendering shares.

The proposed changes would reduce the total time for completion of open offers to 42 working days from the current 62 working days, while the time for tender offers would be reduced to 36 working days from the current 43 working days.

According to SEBI, the changes would be “investor-friendly and make the process more efficient,” and the regulator has solicited public comments on its consultation paper by April 15.

“Given technological advances in the digital and fintech industries and changes in the way shares are solicited and settled, there was a perceived need to review overall timelines for procedural activities, including the length of the solicitation period associated with open offers and purchases connected to review buyback offers,” it said.

SEBI noted that the changes would also help complete the bids more efficiently and on time, synchronizing the schedules of similar activities across all RFP bids as much as possible.

Among other changes, the regulator has proposed the deadline for tendering shares in an open offering to be 10 working days from the date of receipt of SEBI’s comments and would remain open for 5 working days.

“Considering that the same is proposed in the case of open offers, we can also implement the same in buyback offers. Therefore, it is proposed that the tender period can remain open for five working days,” SEBI said in the consultation paper.

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