Buy-back regulation tightened: prohibits large open-market repurchases and mandates escrow security, disclosure, timing, and extinguishment safeguards. Amendments prohibit certain open-market buy-backs reaching a material portion of paid-up capital and reserves, bar a subsequent buy-back within one year of closure, require at least half of the earmarked buy-back amount to be used for repurchases, mandate prompt announcement, opening and closing timelines, daily disclosures, a separate mechanism for physical share buy-backs with identity verification and VWAP-based pricing, and creation of an escrow with cash or bank guarantee subject to drawdown, minimum cash security, staged release, and limited forfeiture to SEBI's investor fund for non-compliance.
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Buy-back regulation tightened: prohibits large open-market repurchases and mandates escrow security, disclosure, timing, and extinguishment safeguards.
Amendments prohibit certain open-market buy-backs reaching a material portion of paid-up capital and reserves, bar a subsequent buy-back within one year of closure, require at least half of the earmarked buy-back amount to be used for repurchases, mandate prompt announcement, opening and closing timelines, daily disclosures, a separate mechanism for physical share buy-backs with identity verification and VWAP-based pricing, and creation of an escrow with cash or bank guarantee subject to drawdown, minimum cash security, staged release, and limited forfeiture to SEBI's investor fund for non-compliance.
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