Sebi proposes overhaul of buyback framework, Pg23

Key Highlights:

• SEBI proposed changes to the buyback framework on Friday.
• The proposal includes re-introducing open market share buybacks through stock exchanges.
• Execution timelines for open market buybacks may be shortened to 66 working days.

Detailed Insights:

• The proposed changes aim to streamline the process of share buybacks and enhance efficiency.
• The earlier framework allowed for a duration of up to six months for completion of open market buybacks.
• Shortening the timeline could lead to quicker deployment of surplus cash by companies and faster realization of value for shareholders.

Key Concepts Involved:

• Buyback: A company's repurchase of its own outstanding shares to reduce the number of shares available on the open market.
• Open Market Operations: Buying and selling of securities in the open market by a central bank to influence monetary policy.