Securities and Exchange Board of India (SEBI) has notified Buy-Back of Securities (Second Amendment) Regulation, 2024 to further amend SEBI (Buy-Back of Securities) Regulations, 2018 (the Regulation). Key highlights of the amendments are mentioned below:
- Insertion of new provision wherein any member of the promoter / promoter group has declared its intention to not participate in the buy-back, the shares held by such member of the promoter / promoter group shall not be considered for computing the entitlement ratio.
- The word record date under Regulation 17(ii) of the Regulation is substituted by the word as date of public announcement, accordingly buy-back offer shall open not later than four working days from the date of public announcement.
- Companies shall not issue any shares or other specified securities including by way of bonus till the date of expiry of buy-back period for the offer made under the regulation, except in discharge of subsisting obligations through conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares.
- Further necessary amendments have been carried on the schedules II, III and IV of the Regulation.
Source: E-Gazette
