Write notes on Mandatory Open Offer.

SEBI Takeover Regulations, 2011 provides for a threshold for mandatory Open Offer. The regulation provides that whenever an acquirer acquires the shares in excess of the threshold as prescribed under regulation 3 and 4 of SEBI Takeover Regulations, 2011, then the acquirer is required to make a public announcement of offer to the shareholders of the Target Company. Regulation 3 of the SEBI Takeover Regulations, 2011 provides that the Acquirer to give an open offer to the shareholders of Target Company on the acquisition of shares or voting rights enlisting the Acquirer along with the persons acting in concert with him to exercise 25% or more voting rights in the Target Company. Further any Acquirer who holds shares between 25%-75%, together with PACs can acquire further 5% shares as creeping acquisition without giving an Open Offer to the shareholders of the Target Company upto a maximum of 75%.