MITCON Credensia acts as an impartial escrow agent, holding funds, assets or documents on behalf of transacting parties and releasing them only when the conditions set out in the escrow agreement are fulfilled. Our escrow services span commercial transactions, mergers and acquisitions, disputed liabilities, private equity transactions, and escrow for timely payouts.
Scope of Service
- Structuring the escrow mechanism along with the transacting parties
- Vetting of the escrow agreement and other ancillary letters / documents
- Opening and operating bank and demat escrow accounts
- Liaising with the bank and depository for the escrow accounts
- Holding funds, assets or documents until agreed conditions are met
- Release of escrow on fulfilment of conditions and maintenance of the escrow mechanism
Frequently Asked Questions
What is an escrow agent?
An escrow agent is a trusted, impartial intermediary appointed to hold funds, assets or documents until the conditions in the escrow agreement are met.
What types of transactions use escrow?
Commercial transactions, mergers and acquisitions, disputed liabilities, private equity transactions and escrow for timely payouts, among others.
Is escrow a SEBI-regulated service?
No. Escrow services are offered on a non-SEBI regulated basis and SEBI investor-protection mechanisms are not available.
How does an escrow arrangement reduce risk?
By ensuring that funds or assets are released only when all agreed conditions are fulfilled, an escrow reduces counterparty risk and the likelihood of disputes.
What accounts are used?
Dedicated bank and, where required, demat escrow accounts are opened and operated by the escrow agent.
Who handles grievances under an escrow transaction?
Complaints and queries under escrow transactions are handled by the relevant client / platform directly; MITCON Credensia is not responsible for the same.
What does structuring the escrow involve?
Working with the transacting parties to define the conditions, flow of funds and release mechanism, and vetting the escrow agreement and ancillary documents.
Have questions about Escrow Agent?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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