Releasing the detailed procedure to be followed under the new mechanism, SEBI cited the acquirer will need to place an order at the beginning of the tendering period for buying the required number of shares through his stock broker.

During the tendering period, the order for selling the shares will be placed by eligible sellers through their respective brokers during normal trading hours.

These shares would be transferred to a special account of the clearing corporation specifically created for this purpose prior to placing the bid.

The brokers will also forward to the Clearing Corporation details regarding the tendered shares.

The cumulative quantity tendered will be made available online to the market throughout the trading session at specific intervals by each of the stock exchanges during the tendering period on the basis of shares transferred to the special account of the clearing corporation.

This circular would be applicable to all the offers for which public announcement is made on or after July 1, 2015.

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