SEBI seeks open-market buybacks and 66 working day offer cap
Securities and Exchange Board of India, or SEBI, the country's stock-market regulator, is looking to shake up its 2018 buyback rules.
The big ideas? Bring back open-market buybacks through stock exchanges, and shorten the maximum offer period to 66 working days instead of stretching it out for six months.
The goal is to make the process smoother and quicker for everyone involved.
Companies to use 40% 1st-half
Companies would need to use at least 40% of their buyback funds in the first half of the offer, and they could do buybacks using regular stock-market trades (no special trading windows needed).
Appointing merchant bankers could become optional, with more compliance work shifted to companies, auditors, and exchanges.
Promoters wouldn't be able to trade their shares during a buyback, and firms must update shareholders electronically within one working day of any public announcement.