SEBI has notified Securities Exchange Board of India (Buy-Back of Securities) Regulations, 2018. The norms prescribes maximum limit of buy-back as 25% or less of the aggregate paid up capital and free reserves of the Company. Under new norms, a company can’t buy-back its securities so as to delist its shares from stock exchange. Norms further prescribes for buy-back through tender offer, buy-back from open market, General obligations for company for buy back procedure.
THE GAZETTE OF INDIA
EXTRAORDINARY
PART –III – SECTION 4
PUBLISHED BY AUTHORITY
NEW DELHI, September, 11 2018
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, September 11, 2018
SECURITIES AND EXCHANGE BOARD OF INDIA (BUY-BACK OF SECURITIES)
REGULATIONS, 2018
No. SEBI/LAD-NRO/GN/2018/32. – In exercise of the powers conferred by subsections (1) and (2) of section 11 and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with clause (f) of sub-section (2) of
section 68 of the Companies Act, 2013, the Board hereby makes the following regulations, namely:-
CHAPTER I
PRELIMINARY
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