buybacks

SEBI chairperson Madhabi Puri Buch told the media that the purpose of amendments is to streamline the process of buyback, enhance the ways of doing business and to boost the level-playing ground for the investors

India’s market regulator body Securities and Exchange Board of India (SEBI) has said that a separate window will be initiated to conduct buybacks till the time it will gradually eliminates the share buybacks through stock exchanges before April 2025.

This will help to create a more impartial process for the shareholders. Also, Sebi has increased the funds allocated for the minimum utilisation for the buybacks through the stock exchanges from 50 per cent to 75 per cent. 

Sebi chairperson Madhabi Puri Buch told the media that the purpose of amendments is to streamline the process of buyback, enhance the ways of doing business and boost the level-playing ground for the investors.

Sebi also notified about the reduction in the timeline by 18 days for the completion of buybacks through the tender offer. 

Partner and head of capital markets of Cyril Amarchand Mangaldas, Yash J Ashar said that with time more and more firms will have to resort to the tender offer route. This will lead to allowing all shareholders to take part in it.

The constricting of regulations by the market regulator come forward after witnessing the strong increase in frauds and underperforming initial public offerings that have harmed minority shareholders.

The market regulator also approved the recommendations for the improvement of governance at market infrastructure institutions including depositories, corporation clearances, and stock exchanges after noticing the vital past failures and disagreements pertaining to National Stock Exchange (NSE) and Multi Commodity Exchange (MCX).