Regulatory Alerts2019-08-17
Added · Updated
Listed Companies (Buy-Back of Shares) Regulations, 2019
These regulations establish the framework for listed companies to buy back their own shares, requiring eligibility such as three years of listing and special resolution approval. They mandate specific procedures for tender offers and exchange-based purchases, including escrow account maintenance, public announcements, and strict timelines for purchase periods and reporting. The rules cap treasury share holdings at twenty percent of paid-up capital and prohibit the sale of treasury shares for six months after the buy-back period closes. Additionally, the regulations repeal the 2016 version while preserving rights and liabilities accrued under the previous regime.
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