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SEBI Proposes New Steps To Simplify Share Buyback Process
SEBI proposes measures to streamline share buyback process Capital markets regulator SEBI on Wednesday proposed measures to streamline the process of buybacks of securities from the open market in a bid to make such process robust, efficient, transparent and shareholder-friendly. Further, a separate window on the stock exchange may be created for undertaking buyback through this route. Currently, rules provide that buyback from the open market through the stock exchange should be less than 15 per cent of the paid-up capital and free reserves of the company, based on both standalone and consolidated financial statements of the company. At present, the present limit is 50 per cent. This is subject to both buybacks being undertaken through tender offers and the second buyback being undertaken not earlier than six months from the date of expiry of the buy-back period of the preceding offer for the buyback. These proposals came as SEBI has been receiving several suggestions and representations from market participants requesting for a review of certain substantive provisions pertaining to the buyback of specified securities, buyback through tender offer as well as from open market through stock exchange mechanism. Source: NDTV #SEBI
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