Mumbai, Jan 05: In an effort to cut the time and costs involved in buyback of shares, Sebi today proposed to drop the current provision for daily advertisement for open market operation, to permit buyback only through exchanges with a national presence and to restrict offer period for 15 days.

The issue of reducing of cost and time for the buyback of securities was discussed at length with stakeholders and the merchant bankers have suggested some steps to achieve this objective, Sebi said in a draft amendments to buyback norms released for public response.
On dispensing with the requirement of issuing a daily advertisement for buyback, Sebi said the information could be posted on a daily basis on the company/stock exchange websites, and the advertisement would be issued on a weekly basis, and every time that an additional five per cent of the buyback has been completed.
Open market buybacks should be allowed to be carried out only on stock exchanges having nationwide trading terminals, it said adding the operations need not have to be done on all exchanges where the company is listed, as investors have access to terminals of bourses with national presence.
The tender offer should be kept open only for 15 days whereas current provision stipulates the offer for buy back should remain open for a period not less than 15 days and not exceeding 30 days.
Bureau Report