OFFER TO BUY SHARES
P.C. Joshi
(Querist) 22 December 2009
This query is : Resolved
FRIENDS,
PLS ADVISE ON THE FOLLOWING ISSUE.
A PERSSON APPARENTLY LOOKS TO BE A SHAREBROKER WRITES A LETTER TO A PERSON BELONING TO THE PROMOTER GROUP OF A LISTED COMPANY SAYING THAT HE IS PURCHASING THE SHARES OF SUCH COMPANY AT X PRICE, IF YOU WANT TO SELL THE SHARES, PLS SELL TO HIM.
IS SUCH AN OFFER IN A CASE OF A LISTED COMPANY IS LEGAL OR SUBJECT TO COMPLIANCE OF PUBLIC ANNOUNCEMENT FORMALITIES UNDER TAKEOVER CODE.
CAN THE ISSUE BE REPORTED TO SEBI/MCA.
REGARDS,
P.C. JOSHI
Raj Kumar Makkad
(Expert) 22 December 2009
if company also accepts it only then it is required to be reported otherwise it is a simple desire and desires are not offence.
P.C. Joshi
(Querist) 23 December 2009
I AGRRE BUT IN MY OPINION CIRCULATION OF SUCH LETTER IS N'T AN UNFAIR PRACTICE CREATING A DOUBTS IN THE MINDS ON INVESTORS AND ADVERSE MARKET SENTIMENTS.sHARES ARE FREELY AVAILABLE IN THE MARKET, THEN WHY NOT TO PICK UP SHARES FROM THE MARKET. OR ELSE ISSUE PUBLIC ANNOUNCEMENT/OPEN OFFER AS PER TAKEOVER CODE.
MORE VIEWS ARE SOLICITED.
REGARDS
P.C. JSOHI
