SEBI To Phase Out Share Buybacks Through Stock Exchanges
NDTV
"This is a glide path and will lead to the phasing out of the present buyback mode (through stock exchange route)," Sebi Chairperson Madhabi Puri Buch said.
Markets regulator Sebi (Securities and Exchange Board of India) today decided to gradually phase out buyback of shares by companies through the stock exchange route, and also approved steps to boost governance at stock exchanges and other market infrastructure institutions.
These were among the proposals approved by Sebi board during its meeting today.
Sebi Chairperson Madhabi Puri Buch said the regulator has chosen the tender offer route for share buyback as the present mode is vulnerable to favouritism.
"This is a glide path and will lead to the phasing out of the present buyback mode (through stock exchange route)," she told reporters here.
