Write notes on the following: Escrow account.
CS Executive · Capital Markets & Securities Laws · PYQS · December 2015
Write notes on the following: Escrow account.
Answer & Explanation:
Escrow Account means an account in which money is held until a specified duty is performed. Escrow account is opened by the issuing company in case of public issue of securities, buy back of securities, take over etc. A sum prescribed under the Regulations/Guidelines is transferred to the Escrow Account unless the said formalities regarding the event are over. The Escrow Account may consist of cash deposited with a schedule commercial bank, bank guarantee in favour of merchant banker, deposit of acceptable securities with appropriate margin with the merchant banker.
Topics: Public Issues
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