Escrow account requirement ensures full consideration funding for delisting offers before and after final price determination. Regulation 11 requires the acquirer or promoter to open an escrow account before the public announcement of a delisting offer and deposit estimated consideration based on floor price and public shareholding; after final price determination and announcement accepting that price, the acquirer or promoter must deposit any additional sum needed to satisfy full consideration. The escrow may be cash, a bank guarantee in favour of the merchant banker, or both; cash may be held in an interest bearing account so long as funds remain available for payment. Cash deposits require empowerment of the merchant banker to instruct issuance of bankers' cheques or demand drafts, and any surplus after payments for tendered shares is released to the promoter; bank guarantees must remain valid until all payments are made.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Escrow account requirement ensures full consideration funding for delisting offers before and after final price determination.
Regulation 11 requires the acquirer or promoter to open an escrow account before the public announcement of a delisting offer and deposit estimated consideration based on floor price and public shareholding; after final price determination and announcement accepting that price, the acquirer or promoter must deposit any additional sum needed to satisfy full consideration. The escrow may be cash, a bank guarantee in favour of the merchant banker, or both; cash may be held in an interest bearing account so long as funds remain available for payment. Cash deposits require empowerment of the merchant banker to instruct issuance of bankers' cheques or demand drafts, and any surplus after payments for tendered shares is released to the promoter; bank guarantees must remain valid until all payments are made.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
