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All about Buy Back

Modified on: Sat, 30 Jul, 2022 at 2:59 PM

TABLE OF CONTENTS


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 the request to support@tradeplusonline.com from your registered email ID for applying to buy back of shares which is available in the Demat account maintained with the company.  You may subscribe full quantity or the eligible quantity of the share for buy back. 


Note: POA 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 may apply be sending an email to us at support@tradeplusonline.com. You may subscribe for full quantity or the eligible quantity of the shares 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?


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 POA 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 POA 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 POA 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 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?


Under normal circumstances, the shares which are not accepted will be returned back within 7 to 10 working days from the date of closure of buy back offer.

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