Subscribe

0

  • Sign in with Email

By clicking the button, I accept the Terms of Use of the service and its Privacy Policy, as well as consent to the processing of personal data.

Don’t have an account? Signup

  • Bookmarks
  • My Profile
  • Log Out
  • NEWS
  • POLICIES
  • MSME OPPORTUNITIES
  • BANKING & FINANCE
  • TECHNOLOGY FOR SMES
  • SECTORS
  • GLOBAL
  • Investment
  • LEGAL
  • KNOWLEDGE QUEST
  • Future Ready Forum 2025
  • Ek Nayi Udaan
  • Future Ready Summit 2024
  • ADVERTISE WITH US
ad_close_btn
  • News
  • Policies
  • Banking & Finance
  • MSME Opportunities
  • Web Stories
  • InFocus
  • Technology For SMEs
  • Sectors
  • Global
  • Fashion

Powered by :

You have successfully subscribed the newsletter.
Banking & Finance Finance

Buy Back Norms and Fund Raising Process Eased Out By SEBI

The SEBI has decided to ease norms governing buy-back. At present, these regulations restrict companies from raising further capital for a period of one year from the expiry of buy-back period, except in discharge of their subsisting obligations.

author-image
SMEStreet Desk
24 Apr 2020 06:24 IST

Follow Us

New Update
Ajay Tyagi, SEBI, Fund Raising, SMEStreet.in, COVID-19
In order to relax the conditions for raising funds from the securities market due to the financial disturbance caused due to the Covid-19 pandemic, regulator SEBI has decided to ease buy-back regulations.

In financial parlance, a buy-back refers to repurchase of the company's stocks from the existing shareholders. This process is either undertaken through the open market or the tender offer route.

The SEBI has decided to ease norms governing buy-back. At present, these regulations restrict companies from raising further capital for a period of one year from the expiry of buy-back period, except in the discharge of their subsisting obligations.

"It has been represented that the said period of one year may be reduced to six months, which would be in line with section 68(8) of the Companies Act, 2013," the regulator said in a circular.

"To enable relatively quicker access to capital, it has been decided to temporarily relax the period of restriction... of the buy-back regulations. This relaxation will be applicable till December 31, 2020."

The relaxation comes into force with immediate effect, it said.

A buy-back generally improves return on equity and earnings per share by reducing the equity base.

Furthermore, it gives an option to the shareholders to get cash in lieu of equity shares or to increase their percentage shareholding in the company following the offer, without additional investment.

SEBI BUy-Back fund raising
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news
logo

Related Articles
Read the Next Article
Latest Stories
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news

Latest Stories
Latest Stories
    Powered by


    Subscribe to our Newsletter!




    Powered by
    Select Language
    English

    Share this article

    If you liked this article share it with your friends.
    they will thank you later

    Facebook
    Twitter
    Whatsapp

    Copied!