Updated By: LatestGKGS Desk
SEBI new rules for Share buyback for more clear declaration
The Securities and Exchange Board of India (Sebi) has amended the rules of buyback (buyback) on September 17, 2018.
Its purpose is to bring more clarity on the need to declare publicly for a share buyback.
According to SEBI, credit rating institutions will not be involved in any activity other than the securities offered through the public or rights issue.
According to SEBI, the rating system has been enacted by the rating company to determine the rating of financial securities and to distribute other works other than financial or financial research and analysis work. It has been given two years time.
Under the new rules, SEBI has prohibited fugitive economic offenders from buying shares in any company or bidding in the open offer.
SEBI said in a notification issued on September 11 that the fugitive economic offender can not bid directly or indirectly for the open offer of any company. Simultaneously, clarification regarding 'free reserves' was incorporated in the new structure according to the Companies Act of 2013.
SEBI has amended the rules of share buyback to eliminate the simplicity of the language, and to add new references to the new company law that came into existence in April 2014.
Any company that is allowed to buy back shares will have to make a public announcement within two business days.
