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      Question

      For acquisition or holding of shares or voting rights

      in a target company, the acquirer have to make
      A A private announcement of such intention Correct Answer Incorrect Answer
      B A public announcement of an open offer Correct Answer Incorrect Answer
      C Disclosure to the stock exchange Correct Answer Incorrect Answer
      D Individual communication to shareholders Correct Answer Incorrect Answer
      E Open offer to target company Correct Answer Incorrect Answer

      Solution

      Regulation 3 of SEBI (SAST) Regulations: Substantial acquisition of shares or voting rights ●      25% shares or voting rights: No acquirer along with PAC (persons acting in concert) shall acquire share or voting rights in a target company taken together with shares or voting rights held by him or together with PAC entitled them to exercise 25% or more, unless a Public announcement has made . ●      Creeping Acquisition Limit: An acquirer who holds 25% or more but less than less than maximum permissible non public shareholding , in any financial year can acquire such additional shares or voting rights as would entitle him to exercise more than 5% of the voting right only when acquirer makes a public announcement .

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