SEBI board approves gradual phasing out of buy-backs through stock exchanges route
The board of market regulator Securities and Exchange Board India (SEBI) on Tuesday approved the gradual phasing out of share buyback by companies through the stock exchanges route.
The board has also approved the increase in minimum utilisation of the amount earmarked for a buyback through stock exchanges from the existing 50% to 75%.
It also made provision for creation of a separate window on the stock exchanges for undertaking buy-back till the time such buy-back is permitted.
For buy-back via the tender offer route, the SEBI board approved reduction in timeline for completion of buy-back by 18 days by removing the requirement of filing of draft letters of offer with SEBI and waiting for observations thereafter.
SEBI has also permitted upward revision of the buy-back price until one working day prior to the record date.
These announcements were made by SEBI chairperson Madhabi Puri Buch at SEBI headquarters after the board meeting. The board also allowed for the introduction of a framework to facilitate ‘execution only platform’ for direct plans of Mutual Fund Schemes.