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Date: 17-May-2024 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sub sections 1 and 2 of section 11 and section 30 of the Securities and Exchange Board of India Act

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The notification introduces the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2024. These regulations further amend the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018.

Key Changes

  • Regulation 19 is amended to include a new proviso. This proviso allows for the exclusion of the impact of material price movements and confirmation of reported events or information on a company's equity share price when determining the volume-weighted average market price. The framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, will be used to determine if such exclusion is applicable.
  • Regulation 22B is amended to include a new sub-regulation (vi). This sub-regulation states that the effect on the price of the equity shares of the company due to material price movement and confirmation of reported event or information may be excluded as per the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for calculation of the lower end of the price range under this regulation.

Impact Analysis

Listed Companies

  • Action Items: Companies should review their buy-back policies and procedures to incorporate the provisions of these amendment regulations. They should also ensure compliance with the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, when excluding price movements.

Investors

  • Action Items: Investors should be aware of the amended regulations and how they might affect buy-back offers. They should also monitor company disclosures related to buy-backs to understand if and how price movements were excluded in determining the buy-back price.

SEBI

  • Action Items: SEBI should provide guidance and clarification on the interpretation and application of the new proviso and sub-regulation, if necessary. They should also conduct surveillance to detect and address any potential abuse of the regulations.

Key Entities Referenced

SEBI: Securities and Exchange Board of India, the regulatory body responsible for regulating the securities market in India. Companies Act, 2013: The primary law governing companies in India, including provisions related to buy-back of securities under Section 68. Securities and Exchange Board of India Act, 1992: The Act that established SEBI and defines its powers and functions. Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018: The principal regulations governing the buy-back of securities by listed companies in India. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015: Regulations governing the listing obligations and disclosure requirements for companies listed on Indian stock exchanges. Regulation 30(11) provides a framework for addressing material price movement.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-एम.एच.-अ.-18052024-254228 xxxGIDExxx CG-MH-E-18052024-254228 असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 359] िई ददल्ली, ि क्रिार, मई 17, 2024/ििै ाख 27, 1946 No.359] NEW DELHI, FRIDAY, MAY 17, 2024/VAISAKHA 27, 1946 भारतीय प्रजतभजू त और जिजिमय बोडड अजधसचू िा म ंबई, 17 मई, 2024 भारतीय प्रजतभजू त और जिजिमय बोडड [प्रजतभजू तयों को क्रय द्वारा िापस लिे ा (बाय-बकै )] (सिं ोधि) जिजियम, 2024 स.ं सबे ी/एल.ए.डी.-एि.आर.ओ./िी.एि./2024/180 —बोडड, कंपिी अजधजियम, 2013 (2013 का 18) की धारा 68 की उप-धारा (2) के खंड (च) के साथ पठित भारतीय प्रजतभूजत और जिजिमय बोड डअजधजियम, 1992 (1992 का 15) की धारा 11 की उप-धारा (1) एिं (2) तथा धारा 30 द्वारा प्रदाि की गई िजियों का प्रयोग करत े हुए एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोडड [प्रजतभूजतयों को क्रय द्वारा िापस लेिा (बाय-बैक)] जिजियम, 2018 का और संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत:् - 1. इि जिजियमों को भारतीय प्रजतभजू त और जिजिमय बोडड [प्रजतभजू तयों को क्रय द्वारा िापस लिे ा (बाय-बकै )] (सिं ोधि) जिजियम, 2024 कहा िा सकेगा । 2. य ेजिजियम रािपत्र म ेंइिके प्रकाजित होि ेकी तारीख स ेलाग ूहोंग े। 3. भारतीय प्रजतभजू त और जिजिमय बोडड [प्रजतभजू तयों को क्रय द्वारा िापस लिे ा (बाय-बैक)] जिजियम, 2018 म,ें- I. जिजियम 19 म,ें मौिूदा परंत क और स्ट्पष्टीकरण के बाद, जिम्नजलजखत िया परंत क िोडा िाएगा, अथातड ्,- 3084 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] “परंत यह और दक कीमत में काफी ज्यादा उतार-चढाि होिे की ििह से और जिस घटिा आदद की िािकारी जमले उसकी प जष्ट होिे की ििह से कंपिी के इदिटी िेयरों की कीमत पर िो असर पडे, उस,े िॉल्यूम िेठटड एिरेि माकेट प्राइस (मात्रा भाठरत औसत बािार कीमत) तय करिे के जलए, भारतीय प्रजतभूजत और जिजिमय बोडड [सूचीबद्धता (जलसस्ट्टंग) बाध्यताएँ और प्रकटीकरण अपेक्षाए]ँ जिजियम, 2015 [सेबी (जलसस्ट्टंग ऑब्लीगिे न्स एडं जडस्ट््लोज़र ठरिायरमेंट्स) रेग्यूलेिन्स, 2015] के जिजियम 30 के उप-जिजियम (11) के तहत जिधाडठरत दकए गए ढाँचे के अिस ार िाजमल िहीं दकया िा सकेगा ।” II. जिजियम 22ख म,ें उप-जिजियम (v) के बाद, जिम्नजलजखत िया उप-जिजियम (vi) िोडा िाएगा, अथातड ्,- “(vi) कीमत में काफी ज्यादा उतार-चढाि होिे की ििह से और जिस घटिा आदद की िािकारी जमल े उसकी प जष्ट होिे की ििह से कंपिी के इदिटी िेयरों की कीमत पर िो असर पडे, उसे, इस जिजियम के तहत मूल्य दायरे (प्राइस रेंि) की न्यूितम कीमत की गणिा करिे के जलए, भारतीय प्रजतभूजत और जिजिमय बोडड [सूचीबद्धता (जलसस्ट्टंग) बाध्यताएँ और प्रकटीकरण अपेक्षाएँ] जिजियम, 2015 [सेबी (जलसस्ट्टंग ऑब्लीगिे न्स एंड जडस्ट््लोज़र ठरिायरमेंट्स) रेग्यलू ेिन्स, 2015] के जिजियम 30 के उप- जिजियम (11) के तहत जिधाडठरत दकए गए ढाँचे के अि सार िाजमल िहीं दकया िा सकेगा ।” बबीता राय डू, कायडपालक जिदेिक [जिज्ञापि-III/4/असा./128/2024-25] पाद ठटप्पण : 1. भारतीय प्रजतभूजत और जिजिमय बोडड [प्रजतभूजतयों को क्रय द्वारा िापस लेिा (बाय-बैक)] जिजियम, 2018, अजधसूचिा स.ं सेबी/एलएडी-एि.आर.ओ./िीएि/2018/32, 11 जसतम्बर, 2018 को भारत के रािपत्र म ेंप्रकाजित हुए थ े। 2. भारतीय प्रजतभूजत और जिजिमय बोडड [प्रजतभूजतयों को क्रय द्वारा िापस लिे ा (बाय-बैक)] जिजियम, 2018 तत्पश्चात:् क) 29 िल ाई, 2019 को भारतीय प्रजतभूजत और जिजिमय बोड ड [प्रजतभूजतयों को क्रय द्वारा िापस लेिा (बाय- बैक)] (संिोधि) जिजियम, 2019, स.ं सेबी/एलएडी-एिआरओ/िीएि/2019/26, द्वारा, ख) 19 जसतम्बर, 2019 को भारतीय प्रजतभूजत और जिजिमय बोड ड [प्रजतभूजतयों को क्रय द्वारा िापस लेिा (बाय- बैक)] (दसू रा संिोधि) जिजियम, 2019, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िीएि/2019/33, द्वारा, ग) 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेटरी सैंडबॉ्स) (संिोधि) जिजियम, 2021, स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/30, द्वारा घ) 7 फरिरी, 2023 को भारतीय प्रजतभूजत और जिजिमय बोड ड [प्रजतभूजतयों को क्रय द्वारा िापस लिे ा (बाय- बैक)] (संिोधि) जिजियम, 2023, स.ं सेबी/एलएडी-एिआरओ/िीएि/2023/120, द्वारा, संिोजधत हुए थे । SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 17th May, 2024 SECURITIES AND EXCHANGE BOARD OF INDIA (BUY-BACK OF SECURITIES) (AMENDMENT) REGULATIONS, 2024 No. SEBI/LAD-NRO/GN/2024/180.─In exercise of the powers conferred by sub-sections (1) and (2) of section 11 and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with clause (f) of sub-section (2) of section 68 of the Companies Act, 2013 (18 of 2013), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, namely:-[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 1. These regulations may be called the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2024. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, - I. in regulation 19, after the existing proviso and Explanation, the following new proviso shall be inserted, namely,- “Provided further that the effect on the price of the equity shares of the company due to material price movement and confirmation of reported event or information may be excluded as per the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for determination of the volume weighted average market price.” II. in regulation 22B, after sub-regulation (v), the following new sub-regulation (vi) shall be inserted, namely,- “(vi) The effect on the price of the equity shares of the company due to material price movement and confirmation of reported event or information may be excluded as per the framework specified under sub-regulation (11) of regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for calculation of the lower end of the price range under this regulation.” BABITHA RAYUDU, Executive Director [ADVT.-III/4/Exty./128/2024-25] Footnotes: 1. The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 were published in the Gazette of India on September 11, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/32. 2. The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 were subsequently amended on: a) July 29, 2019 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/26. b) September 19, 2019 by the Securities and Exchange Board of India (Buy-Back of Securities) (Second Amendment) Regulations, 2019 vide No. SEBI/LAD-NRD/GN/2019/33. c) August 3, 2021 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30. d) February 7, 2023 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/120. 5Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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