DOs and DONTs : Buyback of Securities
- 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’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.