Buy-back of shares

Regulation 10(3) SEBI Takeover Regulations provides the exemption from the Open Offer where consequent to the buy back, the shareholding of the acquirer would increase beyond the threshold provided in Regulation 3(1) of SEBI Takeover Regulations i.e. beyond 25% of the voting capital of Target Company. However, the acquirer is again required to reduce its shareholding below the threshold provided in regulation 3(1) of SEBI Takeover Regulations.

Further, Regulation 10(4)(c) of SEBI Takeover Regulations provides the exemption from the Open Offer in case of buy back by the Target Company where the acquirer existing shareholding prior to the buy back by the Target Company is within the limit of 25%-75% and the increase in shareholding is more than 5%, provided the Acquirer fulfils the conditions as stipulated in the regulation.