Sebi proposed that no company can buy back its shares with an aim to delist its shares. Mumbai: The Securities and Exchange Board of India or Sebi on Wednesday proposed to make share buyback processes in listed firms fairer for small shareholders. In a discussion paper, Sebi proposed that at least 15% of the number of securities which the company proposes to buy back should be reserved for small shareholders. Sebi proposed that no company can buy back its shares with an aim to delist its shares. In an open market buyback, the company, before opening of the offer, will have to create an escrow account towards security and deposit 25% of the amount earmarked for the buyback, Sebi proposed.

Source: Mint March 28, 2018 18:56 UTC