Sebi reserves 15% for small investors in share buybacks
The Securities and Exchange Board of India (Sebi) on Tuesday introduced a 15 per cent reservation for small shareholders in buyback offers. The securities market regulator has defined ‘small shareholders’ as those whose value of shares in a particular scrip is less than than Rs 2 lakh.
The reservation will apply to share buybacks through the tender offer route. In the next phase, Sebi plans to revise the buyback process through the open market route, through which almost all buybacks take place currently.
Under the new regulations, share buybacks will be conducted through the general and small shareholder categories.
