1 month ago
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Securities and Exchange Board of India (SEBI) projected to alteration bargain backmost of shares and different specified securities done banal exchanges, according to a consultation insubstantial released 2, April 2026.
“It is projected that the buy-back of shares oregon different specified securities from unfastened marketplace done banal speech whitethorn beryllium re-introduced arsenic an further method successful presumption of Regulation 4(iv) of Buy-Back Regulations. The existing model arsenic provided successful Regulations and Circulars issued thereunder with respect to buy-back from unfastened marketplace done banal speech would beryllium applicable,” SEBI projected successful the paper.
Buy backmost is the enactment of a listed institution buying its ain outstanding shares , reducing the fig of shares successful the public. This tin beryllium done done publication gathering process oregon done banal exchanges, nevertheless the second way was discontinued from 1 April 2025, owing to differential taxation attraction and anticipation that the full acquisition bid of the institution could get matched with the merchantability bid placed by 1 oregon precise fewer shareholders, depriving different funny shareholders of the equitable opportunity.
The taxation attraction was changed to taxation proceeds from bargain backmost arsenic dividend, hence making it incidental connected shareholders. Further, FICCI and Investment Bankers relation had represented to the markets regulator that bargain backmost done banal speech was an internationally recognised and was businesslike and it beryllium re-introduced.
Accordingly, the marketplace regulator published the connection and has enactment it retired for nationalist consultation. The insubstantial is unfastened for stakeholder feedback until 23, April 2026.
