Aim: Security & transparency for stakeoholders of a company including shareholders.
1. In case of indirect acquisitions where public announcement has been made in terms of Reg. 13(2)(e), 100% of the consideration payable in the open offer shall be deposited in the escrow account.
2. Procedure including interest payment stated by inserting Reg. 11A in case acquirer is unable to make payment to the shareholders who have accepted the open offer within specific period.
Source: Securities & Exchange Board of India (Substantial Acquisition of Shares & Takeover) (Third Amendment) Regulations, 2020 dated July 1, 2020 (https://www.sebi.gov.in/legal/regulations/jul-2020/securities-and-exchange-board-of-india-substantial-acquisition-of-shares-and-takeovers-third-amendment-regulations-2020_46990.html)