Share buyback: SEBI for shortening offer period
By Our Markets Bureau | 06 Jan 2004
Mumbai:
To reduce the cost of buyback of shares by companies,
SEBI has recommended offer period for buyback through
the tender process be reduced to 15 days. It has also
suggested dispensing with the requirement of issuing a
daily advertisement for an open market buyback.
At present, companies have to issue advertisement whenever they purchase shares from the open market. Permitting buyback only on stock exchanges having nation wide trading terminals is also being recommended.
With
this measure, the cost of buyback would get reduced from
35.18 per cent of the offer size to 29.58 per cent of
the offer size, said the SEBI report.
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