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NSE issues new norms on tendering and settlement of shares

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Mumbai: Leading stock exchange NSE has issued new guidelines on tendering and settlement of shares through its platform to make delisting, buyback and takeover offers easier and transparent. “Members and acquirers/companies are required to abide by the revised operating guidelines… with regard to tender offer scheme by National Stock Exchange of India and such other requirements as prescribed by Sebi, or any other regulatory authority,” the bourse said in a notice dated October 21.

According to NSE, the new guidelines would facilitate orderly use of mechanism for acquisition of shares through stock exchange pursuant to tender offers under takeovers, buy back and delisting on web-based IPO bidding platform. Under the norms, all trading members of the capital market segment are eligible to place orders in the tender offer facility.

“The exchange has provided a separate acquisition window in web-based IPO bidding platform to facilitate placing of sell orders,” NSE said. “The placing of orders on the exchange system shall be as per the trading hours of the secondary market,” it added. The exchange has asked its trading members to ensure that the order for selling the shares is placed on behalf of eligible sellers, during the tendering period.


“During order entry, members can enter orders for demat as well as physical shares,” it said. The guidelines are in line with the new norms issued by Securities and Exchange Board of India (Sebi) in April, this year, on mechanism for acquisition of shares through stock exchange pursuant to tender offers under takeovers, buy back and delisting to facilitate tendering of shares by the shareholders and settlement of the same.