Releasing the detailed procedure to be followed under the new mechanism, Sebi said the acquirer will need to place an order at the beginning of the tendering period for buying the required number of shares through his stock broker.
During the tendering period, the order for selling the shares will be placed by eligible sellers through their respective brokers during normal trading hours.
These shares would be transferred to a special account of the clearing corporation specifically created for this purpose prior to placing the bid. The brokers will also forward to the Clearing Corporation details regarding the tendered shares.
This circular would be applicable to all the offers for which public announcement is made on or after July 1, 2015.
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For all impending offers, acquirer/promoter/company would have the option to follow the existing mechanism.
"In case an acquirer or any person acting in concert with the acquirer who proposes to acquire shares under the offer is not eligible to acquire shares through stock exchange due to operation of any other law, such offers would follow the existing 'tender offer method'," Sebi said in a circular.
"The facility for acquisition of shares through stock exchange mechanism pursuant to offer shall be available on the stock exchanges having nationwide trading terminals in the form of a separate window (the acquisition window)," Sebi said in a circular.
The acquirer or company may choose to use 'acquisition window' provided by more than one stock exchange having nationwide trading terminal and in that case, one of bourse would be chosen as the designated stock exchange
The acquirer would have to appoint a stock broker registered with Sebi for the offer. Such broker may also undertake transactions on behalf of sellers.
In case of offer under Takeover Regulations, the merchant banker would have to finalise the basis of acceptance of the shares depending upon the level of acceptances received in the offer.