SEBI considers restoring direct market buybacks, seeks public feedback
Business
SEBI is thinking about letting companies buy back their own shares directly from the stock market again, a method it stopped earlier over fairness and transparency concerns.
It has just released a paper asking for public feedback, hinting that this could become an additional buyback option like tender offers.
Flexibility for companies, SEBI signals protections
This approach gives companies more flexibility to return money to shareholders, but it's been criticized for not treating all investors equally and possibly allowing companies to influence market prices.
SEBI says if it brings it back, there will likely be stricter rules to protect smaller shareholders, so companies get more options, but investor safety stays in focus.