Regulatory Alerts2021-11-17
Guidelines On Share Buybacks By Listed Companies
These guidelines mandate that listed companies seeking to conduct share buybacks must obtain shareholder approval via a regulated circular and demonstrate solvency while ensuring compliance with existing capital market laws. The framework imposes strict disclosure requirements, including daily reporting to the Authority, and sets specific price and volume limitations to maintain market liquidity and protect independent shareholders. Furthermore, companies must avoid conducting buybacks during sensitive financial reporting periods or when in possession of undisclosed material information to prevent market abuse.
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