Regulatory Alerts2020-02-03
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 criteria such as three years of listing and special resolution approval. They mandate specific procedures for tender offers and exchange-based purchases, including a 25% escrow deposit for tenders and a maximum treasury share holding limit of 20% of paid-up capital. The rules impose strict restrictions on trading by insiders, prohibit delisting or winding up for twelve months post-purchase, and dictate the disposal and reporting obligations for any resulting treasury shares.
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