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Sebi to gradually phase out share buyback through stock exchange route

Markets regulator Sebi 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

Sebi

Sebi

Press Trust of India Mumbai

Markets regulator Sebi on Tuesday 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 on Tuesday.

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.

Currently, for share buyback, companies have both the options of stock exchange and tender offer.

 

Besides, Sebi board has decided to reduce time taken for registration of FPIs to facilitate ease of doing business.

Norms will also be amended to facilitate sustainable finance in the country and curb 'greenwashing'.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Dec 20 2022 | 6:05 PM IST

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