Share Buybacks
Concept and Rationale
A share buyback (or share repurchase) is a corporate action where a company purchases its own outstanding shares from the market, thereby reducing the total number of shares in circulation. Buybacks return surplus cash to shareholders, increase earnings per share (EPS), and signal management confidence in the company's valuation. In India, share buybacks are regulated by SEBI under the SEBI (Buy-back of Securities) Regulations, 2018, and are also subject to provisions of the Companies Act, 2013.
- Under the Regulations, a company cannot buy back more than 25% of its total paid-up capital and free reserves in a single financial year.
- The buyback offer must remain open for a minimum of 15 days and a maximum of 30 working days (tender offer route).
- Companies must maintain a debt-to-equity ratio not exceeding 2:1 post-buyback.
- A company cannot announce another buyback within one year of the expiry of the previous buyback period.
- The Regulations require a special resolution passed at a general meeting (for buybacks exceeding 10% of paid-up capital).
● Tracked since April 02, 2026 · last seen June 19, 2026 · updates as the daily brief publishes
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