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    Maintenance of Escrow Account under Buyback

    Posted By : Juhee Goyal / Published on : 06-Aug-2022 05:20 AM / View : 485 / Comment : 1

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    Dear Members!

    Can cash component of the escrow account in the buyback offer process be maintained in an interest bearing account as per SEBI (Buy back of Securities) Regulations, 2018 ?
    Read more on : buyback under account escrow maintenance

    • Dear Juhee,

      As per Regulation 9 (c) of SEBI (Buyback of security regulation) 2020,The escrow account shall be maintained by following ways:
      (i)cash deposited with a scheduled commercial bank, or
      (ii)bank guarantee in favour of the merchant banker, or
      (iii)deposit of acceptable securities with appropriate margin, with the merchant banker, or
      (iv)a combination of (i), (ii) and (iii).
      However, The cash component of the escrow account may be
      maintained in an interest bearing account, provided that the merchant
      banker ensures that the funds are available at the time of making payment to shareholders.
      Thank You.
      06-08-2022 / 05:37:08 AM
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