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 12:30 AM 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.