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DOs and DONTs : Buyback of Securities


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DOs

  • Read the special resolution regarding the proposed buy back in detail and thenvote for it.
  • Compare the price offered in buy back with market price during last few months,Earning per Share, Book Value etc.
  • Determine whether the price offered is reasonable.
  • Read the instructions for making the application for tendering of shares carefullyand follow them.
  • Ensure that your application reaches the collection centre well within time.
  • If you don’t get the letter of offer within reasonable period, contact the MerchantBanker.
  • Mention all details as required in the letter of offer legibly.
  • Furnish all the documents asked for in the letter of offer.
  • Send application through the mode (post/courier/hand delivery/ ordinary post etc.)specified in the letter of offer.
  • Contact Merchant Banker (MB) if no response is received from company/ MBregarding consideration for tendered shares within stipulated time.
  • Contact Compliance Officer mentioned in the letter of offer in case of anygrievance against the company.
  • Contact the Registrar of Companies in case you feel that provision of theCompanies Act has been violated.
  • Contact the Merchant Banker in case of any grievance against the procedurefollowed in the buy back.

DON’Ts

  • Don’t submit multiple applications.
  • Don’t forget to fill up the application legibly.
  • Don’t mutilate the application form.
  • Don’t cross/ cut in the application form.
  • Don’t send the application at wrong address.
  • Don’t send the application after the close of offer.
  • Don’t forget to give complete information in the application form.
  • Don’t forget to sign on application form.
  • Don’t give wrong/ contradictory information on the application form.
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