Sebi panel proposes shareholder pay buyback tax: Check details here

The sweeping proposals are part of a consultation paper floated by Sebi on which comments from the stakeholders have been sought till December 1

The system of taxing buybacks in the hands of companies unfairly burdens shareholders that choose not to tender their shares, a panel of the Securities and Exchange Board of India (Sebi) said in a report.

Tax should be levied only on those shareholders who opt for the plan, it said. The panel also proposed changes in size, time period and use of funds earmarked for open market buybacks. There was also a suggestion to revise mechanism for open market buybacks via book-building. 

The sweeping proposals are part of a consultation paper floated by Sebi on which comments from the stakeholders have been