TMI BlogProvision of escrowX X X X Extracts X X X X X X X X Extracts X X X X ..... an amount equal to twenty-five per cent of the consideration b. On the balance consideration an additional amount equal to ten per cent of the balance consideration Provided that where an open offer is made conditional upon minimum level of acceptance, hundred percent of the consideration payable in respect of minimum level of acceptance or fifty per cent of the consideration payable under the open offer, whichever is higher, shall be deposited in cash in the escrow account. 2 [Provided further that in case of indirect acquisitions where public announcement has been made in terms of clause (e) of sub-regulation (2) of regulation 13 of these regulati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n an interest bearing account, subject to the merchant banker ensuring that the funds are available at the time of making payment to the shareholders.] (4) In the event of the escrow account being created by way of a bank guarantee or by deposit of securities, the acquirer shall also ensure that at least one per cent of the total consideration payable is deposited in cash with a scheduled commercial bank as a part of the escrow account. (5) For such part of the escrow account as is in the form of a cash deposit with a scheduled commercial bank, the acquirer shall while opening the account, empower the manager to the open offer to instruct the bank to issue a banker s cheque or demand draft or to make payment of the amounts lying to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leased only in the following manner,- (a) the entire amount to the acquirer upon withdrawal of offer in terms of regulation 23 as certified by the manager to the open offer: Provided that in the event the withdrawal is pursuant to clause (c) of sub-regulation (1) of regulation 23, the manager to the open offer shall release the escrow account upon receipt of confirmation of such release from the Board; (b) for transfer of an amount not exceeding ninety per cent of the escrow account, to the special escrow account in accordance with regulation 21; (c) to the acquirer, the balance of the escrow account after transfer of cash to the special escrow account, on the expiry of thirty days from the completion of payment of consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X
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