To familiarise its trading members with tender offer facility in the web-based IPO platform, top stock exchange NSE will hold mock bidding session beginning tomorrow till Friday.
Capital markets regulator Sebi in April had unveiled a new mechanism for tendering and settlement of shares through stock exchanges that will make delisting, buyback and takeover offers easier.
The National Stock Exchange (NSE) had provided a separate acquisition window in its web-based IPO bidding platform.
"To make trading members accustomed with the mechanism, exchange is conducting mock bidding session from July 28, 2015 to July 31, 2015 in the Web-based IPO bidding platform," the exchange said in a circular today.
As per Sebi rules, 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.
The cumulative quantity tendered will be made available online to the market throughout the trading session at specific intervals by each of the stock exchanges during the tendering period on the basis of shares transferred to the special account of the clearing corporation.
All the offers for which public announcement is made on or after July 1, this year would have to use this mechanism.
The mock bidding will be held from 12:00 hrs 17:00 hrs, NSE said.
