SEBI Update- Operational Guidance – Amendment to Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 (“Buy-back Regulations”)- 8th March, 2023

SEBI vide its Circular dated 8^th March, 2023 referred to Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023 which were notified on 7^th  February, 2023. They shall come into force on 30^th day of the date of notification i.e. 9th  March, 2023.

Further, all buy-back  offers where the Board of Directors of the company approve resolution with respect to Buy-back on or after 9^th March, 2023 the above mentioned Regulations shall be applicable.

Following restrictions 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.
• Margin Requirement for deposits in Escrow Account the escrow account shall consist of cash and/or other than the cash.

This Circular is applicable to all Listed Entities, Recognized Stock Exchange, Registered Merchant Bankers and shall come into force from 9^th March, 2023