SEBI plans to reduce timelines for open, buyback offers

"Considering the technological advancements in digital and fintech and changes made in the manner of tendering and settlement of shares, a need was felt to review the overall timelines for procedural activities, including the duration of the tendering period, involved in the open offers and buyback tender offers," it said. Further, SEBI noted that the changes would also help conclude the offers in a more efficient and time-bound manner and to synchronise the timelines of similar activities across all the tender offers to the extent possible.

Among other changes, the regulator has proposed the period for tendering shares in an open offer to 10 working days from the date of receiving comments from SEBI and would remain open for 5 working days. "Considering that the same is being proposed in case of open offers, we may implement the same in buyback offers also. Therefore, it is proposed that tendering period may remain open for five working days," as per the consultation paper issued on Friday.

Also read: Sebi comes out with clarifications on transactions in mutual funds units