SEBI Revises Securities Buyback Regulation
The Securities and Exchange Board of India (#SEB) has revised the regulations for share buyback to provide more clarity on the requirement to make public announcements. The review of the current buyback norms has been done to simplify the language, remove inconsistencies and update the references to the new Companies Act, 2013. The amendment brings clarity on the requirement to make public announcement for the offer after declaration of postal ballot results has. Also, an explanation for ‘free reserves’ in-line with Companies Act, 2013 is added in the Regulation. As per the notification, buyback period is defined as the time between date of authorisation for buyback by a company’s board of directors and the date on which the payment is made to shareholders who have accepted the offer. Clarity has also been provided on timelines with respect to various requirements under buyback regulations. The new regulations pertaining to buyback and credit rating agency came into