SEBI has reintroduced the stock exchange route for open-market buybacks, enhancing flexibility for companies amid a surge in buyback announcements. This route allows purchases at market prices and benefits from recent tax changes. Major companies have announced substantial buyback plans, indicating a strong trend in capital returns to shareholders. Pulkit Sukhramani, Partner at JSA Advocates & Solicitors, said: “Companies seeking to consolidate ownership and enhance stock value may find the open market buyback route particularly advantageous. Buybacks conducted through stock exchanges not only reduce administrative burdens but also provide greater flexibility regarding both timing and pricing.”. Read more
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