An Analysis of SEBI's Buyback of Securities Regulations 2018: Impact and Compliance
- NLR Journal
- Apr 18
- 2 min read
By Neha Kumari, Manav Rachna University, Haryana.
Abstract
The Securities and Exchange Board of India (SEBI) is the first and foremost regulator of the Indian securities market keeping the interest of investors in mind and protecting it from any malpractices. On the other hand, SEBI realized the importance of buybacks as a strategic corporate tool as well as its market, dynamics impacts and hence introduced the Buyback of Securities Regulations, 2018. They were law in order to streamline the procedural framework, to make corporate transparency more efficient and in the interests of minority shareholders. Based on an historic investigation of the evolution and salient features of the 2018 Regulations as a process of statutory amendment, this research paper seeks to undertake a critical examination of the 2018 Regulations. The paper digs further into the provisions on the eligibility criteria, buyback limits, procedural requirements and compliance obligations on the listed companies. It then goes on to assess the impact that these regulations have made on corporate behaviour, capital allocation strategies and shareholder value within the Indian market. It gives particular attention to the actual practical challenges corporate possess in adhering to the regulatory framework: norms of disclosure, timeliness requirements and legal vagueness.
By applying an analytical approach, this paper assesses how real world has been the impact of the 2018 Regulations through the case study of famous companies that have done buybacks after the implementation of these regulations. Furthermore, international regulatory standards as briefly mentioned are referenced to illuminate the gaps and strengths of the India’s framework.
Finally, it draws lessons on how to further improve on the regulatory efficiency and compliance quality, and at the same time strike a balance that would serve the corporate and investors interests. It seeks to understand SEBI’s Buyback Regulations holistically and their effectiveness, as well as some derivative reforms in the current financial market.
Keywords: Buyback of Securities, SEBI Regulations 2018, Corporate Governance, Shareholder Protection, Compliance Challenges.
Comentários