The Securities and Exchange Board of India (SEBI) has announced amendments to its Buy-Back Regulations with the aim of streamlining the process of buybacks, promoting the ease of doing business and creating a level playing field for investors.
Changes include the phasing out of buybacks from the open market through stock exchanges, to be achieved gradually by 1 April 2025, and the implementation of a separate window for frequently traded shares.
The maximum limit of a buyback has been adjusted, and amendments have been made to the price, conditions and requirements for buyback of shares. Listed entities undertaking buybacks through tender offer can now increase the maximum buyback price and decrease the number of securities proposed to be bought back, as long as there is no change in the aggregate size of the buyback.
The disclosure, filing requirements and timelines for public announcements have also been amended. Additionally, a merchant banker who is not an associate of the company will issue a certificate certifying that the buyback is in compliance with the Buy-Back Regulations, and that the letter of offer is in order.