SEBI on March 08, 2023 has notified Operational Guidance on Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023. The amendment regulations shall be made effective for all buy-back offers where the Board of Directors of the company approve resolution with respect to Buy-back on or after 30th day of the date of notification of this amendment in the official gazette (i.e. March 09, 2023).
the following restrictions have been set-out for the companies undertaking buy-back through stock exchange route:
- The company shall not purchase more than 25% of the average daily trading volume (in value) of its shares or other specified securities in the ten trading days preceding the day in which such purchases are made.
- The company shall not place bids in the pre-open market, first thirty minutes and the last thirty minutes of the regular trading session.
- The company’s purchase order price should be within the range of ±1% from the last traded price.