Sebi Set to Tighten Buyback Norms

Regulator may make it mandatory for firms to buy back 50% of offer 

Capital market regulator Sebi is set to overhaul the way companies buy back securities from investors through the stock market. The regulator is likely to make it mandatory for companies to buy back at least 50% of the proposed offer and if a firm fails to do so,it may have to forfeit 2.5% of the money earmarked for the buyback. The regulators board, which will meet on June 25, is expected to discuss the proposed rules, two people close to the issue said. An internal analysis by the regulator showed that some companies failed to buy a single share despite the buyback offer being open for an entire year.It had also observed that companies placed buy orders at their discretion.

Economic Times, New Delhi, 21-06-2013

 

 
     
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