Markets regulator Sebi on Tuesday decided to gradually phase out buyback of shares by companies through the stock exchange route and also approved steps to boost governance at stock exchanges and other market infrastructure institutions.
These were among the proposals approved by Sebi board during its meeting on Tuesday.
Sebi Chairperson Madhabi Puri Buch said the regulator has chosen the tender offer route for share buyback as the present mode is vulnerable to favouritism.
“This is a glide path and will lead to the phasing out of the present buyback mode (through stock exchange route),” she told reporters here.
Currently, for share buyback, companies have both the options of stock exchange and tender offer.
Besides, Sebi board has decided to reduce time taken for registration of FPIs to facilitate ease of doing business.
Norms will also be amended to facilitate sustainable finance in the country and curb ‘greenwashing’.
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