SEBI tightens norms for securities buybacks through stock exchange route

SEBI Share Buyback New Rules: Over the past few days, the stock market has seen major ups and downs. It is seen that the stock market, which has been falling continuously, is gradually recovering. Shares of Adani Group rose sharply after the Hindenburg report.

The Adani Group is slowly recovering from the Hindenburg blast and the picture is showing that it is regaining its lost assets. However, now the market regulator Securities and Exchange Board of India (SEBI) has changed the rules for share buyback. These changes will be effective from March 9.

The changed rules are considered important for investors in the stock market. In this background, SEBI has issued a circular, in which information about the changed rules has been given. Sebi is said to have adopted a strict policy while changing the rules.

SEBI has imposed restrictions on bid, price and quantity for companies doing share buybacks through stock exchanges. of the average daily trading volume of its shares during the 10 trading days preceding the day on which a company buys shares.

Further, the Company will not be able to place bids in the pre-open market, during the first 30 minutes and the last 30 minutes of the regular trading session. Also the order price of the company should be within 1 percent on either side of the last traded price.

SEBI has directed companies and brokers to comply with these rules and has given responsibility to stock exchanges to see if the rules are being followed. Also companies have two options to buy shares which are stock exchange and tender offer.

Sebi had in February revised the share buyback rules to streamline the share buyback process, provide a level playing field to investors and promote ease of doing business.

This will eliminate loopholes in the existing process. Besides, 75 per cent of the buyback proceeds will have to be used by way of stock exchange, up from 50 per cent earlier. Buybacks will be done through a separate window of stock exchanges unless they are permitted by the exchanges.

Meanwhile, Adani has reached the 22nd position in the global rich list with a net worth of $54 billion. Adani's net worth increased to $1.97 billion. Shares of all 10 listed companies of Adani rose. A combined brand of the Adani Group.