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Sebi asks cos to make public details of buyback activity

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SummaryMerchant bankers are mandated to file a post-offer report with Sebi.

Market regulator Sebi today asked listed companies to make public the details of their buyback activities as required under new norms.

Besides, merchant bankers are mandated to file a post-offer report with Sebi, Securities and Exchange Board of India said in a circular today.

Prescribing the format for submission of such reports, Sebi today said the listed companies would be required to submit details regarding the total amount earmarked for buyback, cumulative amount utilised for buyback till date, maximum number of shares that can be bought back and number of shares bought back during the current reporting period.

On the other hand, merchant bankers need to disclose details such as date on which previous buyback was authorised and completed, amount earmarked for the current buyback, whether the amount utilised is less than 50 per cent of the amount earmarked, date of release of advertisement and name of newspapers where it was published.

As per the new buyback norms notified in August, listed companies are required to upload information on their website about shares or other specified securities bought back and submit the same to their respective stock exchanges, Sebi said.

Sebi said the prescribed format will "enable the listed companies and the merchant bankers to make disclosures and ensure compliance with the extant regulatory requirements".

Last month, Sebi had notified buyback norms under which it will be mandatory for companies to repurchase at least 50 per cent of their offers.

As per the norms, the companies would have to complete their buyback offers within six months, from 12 months currently. Those not able to meet the target will be barred from launching another offer for a period of one year.

Among others, the new norms asked companies to keep 25 per cent of the proposed buyback offer amount in an escrow account, so as to check companies from making non-serious offers that could wrongly influence the share prices.

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