Regulatory Alerts2022-09-19
Added · Updated
Listed Companies (Buyback of Shares) Regulations, 2019
These regulations establish the framework for listed companies to buy back their own shares, requiring eligibility criteria such as a minimum three-year listing period and special resolution approval. The rules mandate that purchases be executed through the securities exchange's automated trading system within a period of up to 180 days, with treasury shares capped at 20% of paid-up capital and held in a blocked account. The document imposes strict restrictions on the purchasing company, including prohibitions on voluntary delisting for two years and bans on trading by insiders during the buyback period. It further governs the disposal of treasury shares, requiring board approval and public announcements, while prohibiting sales within six months of the purchase closure.