Sebi proposes changes to buyback norms

Nov 17, 2022

Synopsis
Sebi on Wednesday released a consultation paper to sought public comments on the Sebi Regulations 2018. It has proposed amendments with respect to the maximum limit, quantum, time period taken for completion of buybacks

The Securities and Exchange Board of India (Sebi) on Wednesday floated a consultation paper seeking public comments on the Sebi (Buyback of Securities) Regulations 2018. Comments will be sought till 1 December 2022.

The consultation paper has proposed changes with respect to the maximum limit, quantum, and time taken for completion of buybacks.

The markets regulator has been receiving suggestions and representations from market participants requesting a review of substantive provisions pertaining to the buyback of specified securities, according to the consultation paper.

Sebi has constituted a sub-group to be headed by Keki Mistry, the chief executive officer and chairman of HDFC Ltd. The sub-group will also comprise members of Sebi’s Primary Markets Advisory Committee. It will look at certain terms of reference, including streamlining the process of buybacks to make the process more robust, transparent, efficient, and shareholder-friendly.

The sub-group will also look at refining the process of buyback through tender offers while also reviewing timelines for buybacks.

[Livemint]