27th May 2011, 01:00 AM
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Member
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Join Date: Apr 2011
Location: Khammam, AP, India
Posts: 97
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Open Offer - Indian Interpretation?
First let us see what an open offer means according to investopedia/wikipedia and other sites?
Quote:
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A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company.
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In other words, it is similar to the rights issue except that the rights are not transferable - hence sometimes called entitlement issue.
Accord to SEBI?
According to SEBI, especially during a takeover, if one buys 15% or more shares of a company, the buyer has to give an "open offer" to the other shareholders for another 20% equity shares of that company.
This Indianized definition of an open offer seems to bear no resemblance to the one used by other countries?
Strange thing.
Last edited by arcus : 27th May 2011 at 01:31 AM.
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