Answer-Under Regulation 3(2) of the SEBI (SAST) Regulations, 2011, an acquirer who already holds 25% or mor...

Correct Answer 3 If an acquirer already holds between 25 and 75 the typical maximum non-public shareholding, they are allowed a creeping window. They can acquire up to 5 additional voting rights in any single financial year April to March without making an open offer. The Gross Rule SEBI calculates this 5 on a gross basis . This means you cannot buy 5, sell 2, and then buy another 2 in the same year. The moment your total purchases hit 5, the limit is exhausted, regardless of any intermittent sales.

Question

Under Regulation 3(2) of the SEBI (SAS

T Regulations, 2011, an acquirer who already holds 25% or more of the voting rights in a target company (but less than the maximum permissible non-public shareholding) is permitted to acquire additional voting rights without triggering a mandatory open offer, provided such acquisition does not exceed what limit?

A 2% of voting rights in a financial year.

B 3% of voting rights in a financial year.

C 5% of voting rights in a financial year.

D 10% of voting rights in a financial year.

E 25% of voting rights in a financial year.

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