Answer-Under Regulation 3(2) of the SEBI (SAST) Regulations, 2011, an acquirer who (together with persons a...

Question

Accepted Answer

This provision is known as the Creeping Acquisition limit under Regulation 32 of the SEBI SAST Regulations, 2011.   1. The Rule Regulation 32    Applicability This rule applies to an acquirer who already holds substantial shares between 25 and 75.   The Allowance Such an acquirer is allowed to consolidate their holding by acquiring additional shares, provided the acquisition does not exceed 5 of the voting rights in any financial year April 1 to March 31.   The Trigger If the acquirer purchases even a single share that pushes the acquisition for that financial year beyond 5, they must make a mandatory open offer to the public shareholders.    2. Important Nuance Gross vs. Net The calculation is based on Gross Acquisition .   Example If an acquirer buys 3 and sells 1, their acquisition for the purpose of this limit is 3, not 2. They cannot net off sales against purchases to stay under the 5 limit.    3. Comparison with other thresholds    25 This is the initial trigger under Regulation 31 . If a person with 0 holding wants to buy shares, they hit the trigger at 25.   10 This is the disclosure threshold SAST disclosures, not the open offer trigger.   26 This is the minimum size of the Open Offer itself i.e., the acquirer must offer to buy at least 26 of the company from the public.

Under Regulation 3(2) of the SEBI (SAS

Detailed Solution

More Other Laws and Acts Questions

Hey! Ask a query

Please Register/Login

RBI Grade B 2026 Phase 1 Memory Based Paper