Bom HC: LARR Authority Can Examine Limitation Issues in Land Acquisition References under 2013 Act  ||  MP HC: Long-Serving Employees Cannot Be Denied Regularisation by Retrospective Statutory Amendments  ||  J&K&L HC: Routine Challenges to Lok Adalat Awards Defeat Their Purpose of Quick Dispute Resolution  ||  Bombay HC: Restricting Compensation For Wild Animal Damage to Select Species Violates Article 14  ||  Supreme Court: Corporate Guarantee Constitutes as Financial Debt under the IBC  ||  Supreme Court: No Right to Full Tenure Exists When Appointment is Made ‘Until Further Orders’  ||  SC Mandates Trial Courts Seek Reports on Mitigating and Aggravating Factors Before Death Sentencing  ||  Supreme Court: Schools Cannot Delay Admission of State-Allotted Student over an Eligibility Dispute  ||  J&K&L HC: Delay in Executing Preventive Detention on Unsubstantiated Medical Ground Makes it Invalid  ||  Delhi HC Allows AITA Results For Interim Management and Directs Fresh Elections Under New Sports Law    

Operational Guidance - Amendment to Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018- (Securities and Exchange Board of India) (08 Mar 2023)

MANU/SSMD/0014/2023

Capital Market

1. SEBI has notified Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023 on February 07, 2023. The link for the same.

Applicability of Regulations

2. The aforementioned amendment regulations shall come into force on 30th day of the date of notification.

3. Accordingly, the amendment regulations shall be made effective for all buy-back offers where the Board of Directors of the company approve resolution with respect to Buy-back on or after 30th day of the date of notification of this amendment in the official gazette (i.e. March 09, 2023).

Buyback through Stock Exchange Route- Restrictions on placement of bids, price and volume

4. As per Clause (vi) of Regulation 16 of the Buy-back Regulations, the buy-back through stock exchanges shall be subject to the restrictions on placement of bids, price and volume, as specified by SEBI.

5. In this regard, in consultation with the Stock Exchanges, the following restrictions have been set-out for the companies undertaking buy-back through stock exchange route:-

(a) The company shall not purchase more than 25% of the average daily trading volume (in value) of its shares or other specified securities in the ten trading days preceding the day in which such purchases are made.

(b) The company shall not place bids in the pre-open market, first thirty minutes and the last thirty minutes of the regular trading session.

(c) The company's purchase order price should be within the range of ±1% from the last traded price.

6. In this regard, the company as well as its appointed broker shall ensure the compliance with the aforesaid provisions. The Stock Exchange shall monitor their compliance and in case of any instance(s) of such non-compliance shall impose appropriate fines and/or other enforcement actions as deem fit.

Margin Requirement for deposits in Escrow Account

7. As per the sub-clause (c) of Clause (xi) of Regulation 9 and Clause (ii) of Regulation 20 of the Buy-back Regulations, the escrow account shall consist of cash and/or other than the cash.

8. The portion of escrow account in the form of other than the cash shall be subject to appropriate haircut, in accordance with the SEBI Master Circular for Stock Exchange and Clearing Corporations dated July 05, 2021, as amended from time to time.

9. Merchant Banker to buy-back offer is advised to ensure that the adequate amount after the applicable haircut is available in escrow account till the completion of all formalities of buy-back.

General

10. The recognized Stock Exchanges is directed to bring the provisions of this circular to the notice of all listed entities and also disseminate the same on their websites.

11. This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors and to promote the development of, and to regulate the securities market.

Tags : OPERATIONAL GUIDANCE   AMENDMENT   BUY-BACK OF SECURITIES  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved