Write a short note on "Role of Escrow Account in buyback of shares".

As per SEBI (Buy back of Securities) Regulations, 2018, a company intending to buy back shares shall within two working days of the public announcement, as and by way of security for performance of its obligations, deposit a specified sum in an escrow account. The escrow account shall be payable as follows: Consideration for buyback Escrow Account Does not exceed ₹ 100/- crore. 25% of the consideration payable Exceeds ₹ 100/- crore (i) 25% for consideration amount of upto ₹ 100/- crore and (ii) 10% for consideration of amount above ₹ 100/- crore Escrow account shall, subject to appropriate margin as specified by the Board, consist of: Cash including bank deposits deposited with any scheduled commercial bank, or Bank guarantee issued in favour of the merchant banker by any scheduled commercial bank, or Deposit of frequently traded and freely transferable equity shares or other freely transferable securities, or Government Securities, or units of mutual funds invested in gilt funds and overnight schemes, or a combination of above