All about Buy Back
TABLE OF CONTENTS
- What is a Buy Back Offer?
- What is the difference between Open Market Buy Back & Tender Offer Buy Back?
- How to apply for Buy Back?
- What are the charges applicable for Buy Back?
- My account is inactive. Can I participate in the Buy Back?
- What processes are involved after bidding for Buy Back?
- My buy back offer is accepted. How will I get the credit of funds?
- My buy back offer is accepted but I have not received the payment?
- My buy back offer is not accepted. When will my shares be returned?
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.
What is the difference between Open Market Buy Back & Tender Offer Buy Back?
In a Tender offer buy back, the existing shareholder needs to apply for the acceptance separately.
How to apply for Buy Back?
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?
What processes are involved after bidding for Buy Back?
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.
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 Tradeplus') 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?
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. Due to the above mentioned risk, there can be no guarantee of successfully processing requests received on the last date.
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