Avail 50% discount on all subjects for Nov batch(access till Nov 20th). Use coupon code Nov14.

×
Home > Experts > Shares & Stock > Procedure for opening an escrow account


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Procedure for opening an escrow account (Shares & Stock)

Report Abuse
This query is : Resolved



( Author )
03 March 2011

Dear All,
Our Company wants to open an escrow account for buy back of company's shares.
will you tell me the procedure of opening an escrow account with bank name , branch, contact no (In delhi Only)

Best Regards,
Nitin


bhupender soni

( Expert )
21 June 2011

The company should deposit in an escrow account opened with a scheduled commercial bank on or before the opening of the offer for buy back of securities following sum as is specified below –
1- Estimated consideration payable for buy-back does not exceed rs 100 cr , 25% of the consideration payable
2- If consideration exceeds rs 100 cr , 25 % upto rs 100 cr and 10 % of the balance
And where a company opts to deposit cash in an escrow account it should empower the merchant banker to instruct the bank to issue a bankers cheque or demand draft for the amount lying to the credit of the escrow account in the favors
And where the account opened by the company consists of bank guarantee it should be in favour of the merchant banker and should remain valid for 30 days after the closure of the offer and guarantee should not be returned by the merchant banker till the completion of and obligation under the regulation


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :








submit










Quick Links





back to the top