Market regulator Sebi proposing to revamp the share buyback process

The Securities and Exchange Board of India (Sebi), on Wednesday, floated a consultation paper proposing to revamp the share buyback process. The new framework proposes to cut the time period taken for completion of buybacks, enhance the amount companies can repurchase vis-à-vis their free reserves and reduce the cooling-off period between two buybacks.
 

Currently, companies can buyback only 25 per cent of the paid-up capital and free reserves under the tender route. Sebi has proposed an increase in it to 40 per cent. The move will help companies return a greater amount to shareholders in the form of buyback. Further,