SEBI's Third Amendment to Takeovers Regulations: Escrow Deposits Required for Indirect Acquisitions, 10% Interest on Delayed Payments.

The Securities and Exchange Board of India (SEBI) has issued the Third Amendment to the Substantial Acquisition of Shares and Takeovers Regulations, 2020. The amendment mandates that for indirect acquisitions, a full amount equivalent to the consideration payable in the open offer must be deposited in an escrow account. Additionally, securities cannot be deposited for such acquisitions. If the acquirer delays payment to shareholders who accepted the open offer, they must pay interest at 10% per annum unless the delay is beyond their control. The amendment also removes restrictions on transactions through bulk or block deals.

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