Market regulator SEBI on Friday clarified that shareholders holding securities in physical form are allowed to buy shares in open offers, buyback through tender offers and exit offers in case of voluntary or compulsory dealing.
Such tender shall be in accordance with the provisions of the respective regulations, the regulator issued a circular stating that the provisions of the Listing and Disclosure Requirements (LODR) Regulations, 2015, the applicability of Regulation 40 (1) to open buybacks. Explanation in relation to And delimitation of securities of listed entities.
The clarification comes after obtaining representation from investors by the Securities and Exchange Board of India (SEBI), expressing concern that they are not capable of open offers, buybacks and remittances of listed entities’ securities, as the securities held by them are dematerialized. Was not. Form.
As per Regulation 40 (1) of the LODR norms, “… in the case of transmission or transfer of securities, requests to effect the transfer of securities will not be processed unless the securities are dematerialized as depository. Are kept, ”noted Sebi.
The regulator said that the circular will come into force with immediate effect.