Frequently Asked Questions

Yes customers can modify the buyback order except Takeover as the modification/ cancellation is not allowed. There are two types of Modifications allowed namely:-

• Lower Modification: In this case, the additional buyback shares will be on hold till settlement.
• Upper Modification: In this case, you will have to place a new buyback order for the additional shares.

Yes, customers can cancel the order. However, they can cancel the buyback orders only before the end date of the issue. There shares will be released after the settlement cycle is over.

Funds payout for buyback issue will be directly credited by the exchange in respective bank account of the customer.

In case of failure of payout by exchange, HDFC securities Ltd will make the payout deducting the brokerage and statutory charges levied which will be the final payout to the customer.

In case the exchange directly credits the funds payout successfully, HDFC securities Ltd will debit the charges of brokerage including all statutory charges as per contract note.

Funds payout process for eligible NRI

In case of NRI customer, funds payout for buyback issues is received by HDFC securities ltd from the respective exchanges. Post deduction of brokerage, statutory levies the same is credited to respective NRI customer’s relevant linked HDFC bank account by HDFC bank after deducting the TDS.

Contract note will be sent to the clients within 24 hrs of the settlement date.

Buyback is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price.

Buyback can be of two types - tender offer & open market offer.

Tender offer - Shareholders will have the option to submit (or tender) a portion or all of their shares. Within a certain time frame and at a premium to the current market price, this premium compensates investors for tendering their shares rather than holding on to them.

Market offer - Companies buyback shares on the open market over an extended period of time.

You can participate in all types of tender offer (mentioned below) using buyback menu.

• Buyback
• Takeovers
• Delisting

The brokerage rates and other applicable charges are same for Cash and Buyback transactions. 

You can apply for how much ever quantity you are eligible for, in the buyback. Furthermore, you can also apply for additional shares by placing another buyback order for the additional quantity.

Buy Back order can be placed anytime except between 4:00 PM to 6:00 PM and last day cut-off is 11:30 AM

Buyback orders can be placed by following the below given path

Login - Equity - Buyback Dashboard - Buyback - Apply - Submit.

Investors can apply for buy back by two methods:-

Option 1 : Link the DDPI with Demat and trading account for seamless experience

Link for DDPI Mandate: -

HSL Demat Account https://www.hdfcsec.com/hsl.docs/HSL%20DDPI%20_ver%202_17102022-202210191120264633471.pdf

HDFC bank Demat Account https://www.hdfcsec.com/hsl.docs/HDFC%20Bank%20DDPI_%20resident%20%20ver%202_17102022-202210191119102629720.pdf

We request you to submit the dully filled DDPI to the nearest HDFC securities Branch.
Once the DDPI is linked to your demat and trading account, visit www.hdfcsec.com and apply for buyback seamlessly.
 

Option 2 : Physical BuyBack process

1) Transfer the shares to broker pool account, by issuing Delivery Instruction Slip to respective depository participant.
Transfer details are as mentioned below:-

Two days prior to Buy Back Last Date, the acknowledged DIS scan copy should be received by said department.

2) Provide the scan copy of duly stamp DIS slip on [email protected], along with following details.

The below fields should be filled as per the letter of offer shared with the client by the respective company.

*Category - IND - Individual, CO - Corporate/Company.

Important points to be noted:-

• In case of any incorrect information or delay in submission will lead to non-processing of buyback request.
• Shares transferred from non-linked demat account / non processing of request, will be returned only after settlement date.

The client who holds active trading account and demat account can participate in Buy Back offer.