SEBI allows direct buybacks via stock exchanges from August 1
SEBI is shaking things up for listed companies: starting August 1, they can buy back their own shares directly through the stock exchange.
The process is getting a lot quicker too, with the buyback window now capped at 66 working days instead of dragging on for six months.
The main goal? Make things smoother and keep shareholders better in the loop.
SEBI removes merchant banker requirement
Companies no longer need to hire merchant bankers for these buybacks; now, the activities are assigned to the company, compliance officer, statutory auditor, secretarial auditor, and stock exchanges.
Plus, there's a tax update: public shareholders will pay tax only on their actual gains from buybacks, making things fairer across the board.
Promoters' shares will be frozen during this period to keep everything transparent, and companies still have to stick to minimum public shareholding norms as per law.