All about Buy Back


What is a Buy Back Offer?

A buy back offer is a corporate action wherein a Company offers to buy back its shares from the existing shareholders at a defined price during a given period of time. Buy Back can be made in 2 modes, Open Market Route or Offer Tender Route.

You can  send a request by writing to us from our support portal here from your registered email ID for applying to buy back of shares which is available in the Demat account.  You may subscribe full quantity or the eligible quantity of the share for buy back. 

Note: DDPI should be enabled in your Demat Account to enable us process the Buy Back request

What is the difference between Open Market Buy Back & Tender Offer Buy Back?

In a open market buy back, the Company providing the offer will buy back its shares in the open market within a defined period of time at or below the maximum price ceiling which is fixed.

In a Tender offer buy back, the existing shareholder needs to apply for the acceptance separately.

How to apply for Buy Back?

You will be able to apply for Buy Back only 

a) if you have free holdings of the shares in your demat account as on the record date. 

b) If you have the shares in the Primary Demat account (applicable for those who had mapped multiple demat account under one UCC). You may in such case, apply online

If you have shares in the secondary demat account, you may apply offline by writing an email to us.

If you have the shares, Login to here to apply.

What are the charges applicable for Buy Back?

All charges which are applicable for normal a sale transaction will also be applicable for the Buy Back transaction. 

My account is inactive. Can I participate in the Buy Back?

You will first be required to activate your trading account and fund for the charges that would be levied on successful placement of the buy back order. 

Activation of Inactive accounts are subject to approval from the Exchange. Take due care to get your account activated well before the Buy Back offer close date, to participate in it.

What processes are involved after bidding for Buy Back?

On receiving a request to offer shares for buy back, we verify for the DDPI and the quantity of shares. If the quantity available in the demat account is equal or more than the quantity offered for buy back, the request will be taken for further processing, else it will be rejected. 

If DDPI and sufficient number of shares are available, the request will be accepted and the shares will be moved from your demat account  to the Target demat account as mentioned by the Company offering buy back. 

If DDPI on demat is not provided, you will be required to transfer the shares to the Target Id by issuing a Delivery Instruction Slip before the cut off date as prescribed by the Company. 

Subsequently, we will make a buy back bid in the Exchange Platform dedicated for this and the confirmation of such order will be sent to you via email at the End of the Day.

After giving a Buy Back request, the shares should not be sold in the secondary market.

My buy back offer is accepted. How will I get the credit of funds?

Upon successful acceptance of the shares by the company offering buy back, the considerations to Resident accounts and NRO accounts will be credited to their respective bank account as per the bank details updated in their demat account. Ensure, it is necessary to keep your bank account updated in our records.

In case of NRE accounts, the buyback amount will be credited to your Trade Ledger. We will further report this to your bank and the bank will subsequently credit the funds to your NRE Savings account.  

Under normal circumstances, consideration will be credited within 7 to 10 working days from the date of closure of buy back offer.

My buy back offer is accepted but I have not received the payment?

This could be due to invalid bank account linked to your demat account. In such case, the payment will be credited to Broker's (that is Navia's) account. We will validate the same and subsequently credit to your trading account.

My buy back offer is not accepted. When will my shares be returned?

Under normal circumstances, the shares which are not accepted will be removed from 'Freeze' status to 'Free' status in Demat account within 7 to 10 working days from the date of closure of buy back offer.

Is it safe to offer shares for Buy Back on the last date of buy back?

Not really. This is because, on receiving a Buy Back request, we move the shares from your demat account to the Buy Back settlement account which takes some time and the time taken differs from case to case. Hence, to avoid shares not being accepted in the Buy Back settlement at the last moment, we strongly suggest clients to offer the request at least a day before the offer closes or latest by 12pm on the last date. Due to the above mentioned risk, there can be no guarantee of successfully processing requests received on the last date.

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