For Quick Alerts
For Daily Alerts

SEBI Eases Buyback Rules For Companies With NBFC, Housing Finance Subsidiaries

By Staff

The Securities and Exchange Board of India (SEBI) has eased its norms for share buyback by listed companies, especially those that have subsidiaries in housing finance and NBFC segments.

SEBI Eases Buyback Rules For Companies With NBFC, Housing Finance Subsidiaries

The notification comes as the SEBI board had approved norms in this regard in August. Repurchasing shares by listed companies is governed by the Buyback Regulations of SEBI as well as the Companies Act.

Among other conditions that the companies need to follow, the buyback offer cannot exceed 25 percent of the aggregate paid-up capital and free reserves of the company, but shareholders' approval is required through a special resolution in case the size exceeds 10 percent.

Further, a buyback is permitted only if the ratio of the aggregate of secured and unsecured debts owed by the company after the buyback is not more than twice the paid-up capital and free reserves, unless a higher debt-to-equity ratio is specified under the Companies Act.

With inputs from PTI

Story first published: Monday, September 30, 2019, 16:46 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more