Write notes on Voluntary open offer.

Voluntary Open Offer means the Open Offer given by the Acquirer voluntarily without triggering the mandatory Open Offer obligations. Voluntary Offers are an important means for substantial shareholders to consolidate their stake and therefore recognized the need to introduce a specific framework for such Open Offers. Regulation 6 of the SEBI (SAST) Regulations, 2011 provides the threshold and conditions for making the Voluntary Open Offer which are detailed below: Eligibility: Prior holding of at least 25% shares. Shareholding of the acquirer and Person Acting in Concern (PACs) post completion of open offer: post completion of the open offer the shareholding of the acquirer along with PACs shall not exceed the maximum permissible non public shareholding. Acquisition of shares prior to the voluntary open offer: Acquirer shall become ineligible to make a voluntary open offer if during the preceding 52 weeks, the acquirer or PACs with him has acquired shares of the target company without attraction the obligation to make a public announcement of an open offer. Prohibition on the acquisition of shares during the offer period: SEBI takeover regulation 2011 prohibits the acquirer who has made a voluntary open offer from further acquiring the shares during the offer period otherwise than under the open offer. Restriction of the acquisition of shares post completion of voluntary open offer: An acquire and PACs who have made a voluntary open offer shall not be entitled to further acquire shares for a period of 6 month after completion of the open offer except: Pursuant to another voluntary open offer Pursuant to completing open offer to the open offer made by any other person for acquiring shares of the target company Offer size: The Voluntary Open Offer shall be made for the acquisition of at least ten per cent (10%) of the voting rights in the Target Company and shall not exceed such number of shares as would result in the post-acquisition holding of the acquirer and PACs with him exceeding the maximum permissible non-public shareholding applicable to such Target Company.