Comment on the following : In the event of forfeiture of the amount lying in the escrow account, the acquirer shall be paid one-third of the amount forfeited in terms of regulation 17(10) of SEBI (Substantial Acquisition

In the event of forfeiture of the amount lying in the escrow account, the entire amount is distributed in the following manner as per SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011: One-third of the Escrow account to the Target Company; One-third of the escrow account to the Investor Protection and Education Fund established under SEBI (Investor Protection and Education Fund) Regulations, 2009; Residual one-third of the escrow account is to be distributed pro-rata among the shareholders who have tendered their shares in the offer. Therefore, the statement that "the acquirer shall be paid one-third of the amount forfeited" is incorrect. The acquirer does not receive any portion of the forfeited escrow amount; it is distributed among the target company, IPEF, and tendering shareholders.