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Buyback

Buyback

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Published by routraykhushboo

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Categories:Types, Business/Law
Published by: routraykhushboo on Jan 03, 2012
Copyright:Attribution Non-commercial

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11/21/2013

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What is the manner in which the company can buy back its own shares?
The company can buy back its shares in any of the following manners :From the existing shareholders on a proportionate basis through the tender offer;i.From open market through:ii.Book building processa.Stock exchange,b. i. From odd lot holders.
Can a company buyback its shares without passing shareholders’ resolution?
Yes.Acompanymaybuybackitsshareswithoutshareholders’resolution,totheextentof10%ofitspaidupequitycapitalandreserves.However,ifacompanyintendstobuybackitssharestotheextentof25%ofitspaidupcapitalandreserves/thenthesamehastobeapprovedbyShareholdersResolutionasspecifiedinSection77AofCompanies Act, 1956.
Where can one get details of companies proposing to buyback their shares?
Listedcompaniesarerequiredtointimatethestockexchangeofgeneralmeetingsandresolutionspassed1.thereof.Hence,informationoncompaniesproposingtobuybacksharesmaybeobtainedfromthestockexchanges.WhenbuybackofferdocumentorpublicannouncementisfiledwithSEBI,SEBIissuesapressreleaseandthe2.offer document is put on the SEBI website under primary market page under the head "buyback".
How does one tender ones Shares for buyback, in the tender offer method?

Thecompanywillsendyouatender/offerform.Youwillhavetofilluptheformaspertheinstructionsofthecompany
page: 1[ www.sebi.gov.in ]
 
and enclose the documents asked for, by the company.
How does one participate in the buyback in case one does not receive the tender/offer form?

Youcanmakeanapplicationonplainpaperstatingyourfolionumber,name,address,numberofsharesheld,sharecertificatenumber,distinctivenumbers,numberofsharestendered,togetherwiththeoriginalsharecertificateandtender the same at the collection centres/registrars, as mentioned in the public announcement.
Can you tender your shares for buyback if you are not a registered shareholder?
Yes,providedyousubmitthedulyexecutedtransferdeedfortransferofsharesinyourname,alongwiththeofferformandotherrelevantdocumentsasrequiredfortransfer,ifany.Thesameshouldbesenttotheregistrartothebuybackoffer.
What is the manner in which the company decides the acceptances from each shareholders?
Incasethesharesofthecompanyaretradablecompulsorilyindematsegment,theacceptancesfromanyinvestorshallbeonaproportionatebasisirrespectiveofthenumberofsharestenderedinthebuyback,andirrespectiveofwhether shares are in physical or demat form.Ifthesharesarenotincompulsorydematsegment,firsttheentiresharestenderedbeinglessthantheminimummarketlotshallbeacceptedinfull.Thereafter,theacceptanceswillbeonproportionatebasisinamannertoensurethat the acceptances are in market lot. In such a case, a draw of lots shall be done, as in the case of public issues.
When will the shareholder receive intimation about acceptance of his shares?
The company is required to send intimation to the tenderers within 15 days from the closure of the offer.
When will the shareholder receive the consideration/the share certificate?

The company is required to send the above, within 21 days from the closure of the buyback offer.
page: 2[ www.sebi.gov.in ]

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