Securities and Exchange Board of India (SEBI) issued amendments to the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, on May 17, 2024. These amendments, effective upon publication in the Official Gazette, introduce changes primarily related to the exclusion of the effect on the price of equity shares of a company due to material price movement and confirmation of reported events or information. This exclusion is in accordance with the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The aim is to determine the volume-weighted average market price and the lower end of the price range for buy-back of securities.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 17th May, 2024
SECURITIES AND EXCHANGE BOARD OF INDIA (BUY-BACK OF SECURITIES) (AMENDMENT)
REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/180.─In exercise of the powers conferred by sub-sections (1) and (2) of section 11 and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with clause (f) of sub-section (2) of section 68 of the Companies Act, 2013 (18 of 2013), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, namely:-
1. These regulations may be called the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2024.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, –
I. in regulation 19, after the existing proviso and Explanation, the following new proviso shall be inserted, namely,-
“Provided further that the effect on the price of the equity shares of the company due to material price movement and confirmation of reported event or information may be excluded as per the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for determination of the volume weighted average market price.”
II. in regulation 22B, after sub-regulation (v), the following new sub-regulation (vi) shall be inserted, namely,-
“(vi) The effect on the price of the equity shares of the company due to material price movement and confirmation of reported event or information may be excluded as per the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for calculation of the lower end of the price range under this regulation.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./128/2024-25]
Footnotes:
1. The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 were published in the Gazette of India on September 11, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/32.
2. The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 were subsequently amended on:
a) July 29, 2019 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/26.
b) September 19, 2019 by the Securities and Exchange Board of India (Buy-Back of Securities) (Second Amendment) Regulations, 2019 vide No. SEBI/LAD-NRD/GN/2019/33.
c) August 3, 2021 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30.
d) February 7, 2023 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/120.
