The Companies (amendment) Bill, 2001 was passed by Parliament today with Lok Sabha having already given its assent last week. Union law minister Arun Jaitley informed Rajya Sabha today that companies planning to go in for buyback have to intimate the stock exchanges prior to their move.
Piloting the Companies (amendment) Bill, 2001 to replace the ordinance on the subject, Jaitley said this would be necessary as the listing guidelines as drafted by the Securities and Exchange Board of India, remain unaltered.
Jaitley said the Bill, which allows buy-back of shares by companies, would enhance liquidity in stock markets, besides improving sentiments. Replying to the debate he said ever since the promulgation of the ordinance on October 23, three companies had intimated to stock exchanges about their plans to buy back shares.