Romeo International Limited, an Indian public limited company, is listed on BSE. On Friday i.e. 14th December, 2018 one of the shareholders of the Company, Ganesh, who was already holding 30% stake in the company, made a

CS Executive · Securities Laws and Capital Markets · PYQS · December 2020
Romeo International Limited, an Indian public limited company, is listed on BSE. On Friday i.e. 14th December, 2018 one of the shareholders of the Company, Ganesh, who was already holding 30% stake in the company, made a public announcement for an open offer for the acquisition of 13 crore equity shares (Face value ₹ 10 each), constituting 26% of the equity share capital of the Romeo International Limited. The offer price per share according to Takeover Regulations is arrived at ₹ 500 per share. Explain the following with reference to SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011: (b) Explain the forms of maintaining the escrow account.

Answer & Explanation:

The escrow account may be in the form of: Cash deposited with any scheduled commercial bank; Bank guarantee issued in favour of the manager to the open offer by any scheduled commercial bank; or Deposit of frequently traded and freely transferable equity shares or other freely transferable securities with appropriate margin.

Topics: Takeovers

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