Sebi issues alerts on open offers by companies to protect investor’s rights
Advertisement
Advertisement
To educate the A company needs to issue a 'public announcement' in newspapers and through stock exchanges for the benefit of investors whenever they need to acquire shares from the minority shareholders including in cases of delisting and takeovers.
The delisting and open offer decisions can impact the interest of shareholders in a big way. Therefore, the investors need to be aware about such announcements made by the companies, in which they have invested.
An open offer is triggered when an acquirer purchases 25 per cent stake in a listed company. In that case, the buyer has to pick up an additional 26 per cent holding in the target firm.
In the delisting process, promoters need to ensure that at least 25 per cent of minority shareholders participate in such a process, or else they need to demonstrate that the entire 100 per cent investors have been approached.
Advertisement
In a separate tweet, Sebi also warned investors against schemes which promise very high returns in a short duration, including those claiming to create millionaires overnight.
The warning to investors comes as certain entities were running ponzi schemes in the country which siphoned of thousands of crore of rupees from unsuspected investors through such fraud schemes.
The regulator asked investors not to fall for schemes that assures unbelievably high returns in a very short time.
Advertisement
(Image credits: Indiatimes)Advertisement
- I'm an interior designer. Here are 10 things in your living room you should get rid of.
- A software engineer shares the résumé he's used since college that got him a $500,000 job at Meta — plus offers at TikTok and LinkedIn
- Higher-paid employees looking for work are having a tough time, and it could be a sign of a shift in the workplace
- 7 scenic Indian villages perfect for May escapes
- Paneer snacks you can prepare in 30 minutes
- Markets crash: Investors' wealth erodes by ₹2.25 lakh crore
- Stay healthy and hydrated: 10 immunity-boosting fruit-based lemonades
- Here’s what you can do to recover after eating oily food
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market