Preview

Sebi Revised Guidelines on Share Buyback

Powerful Essays
Open Document
Open Document
5244 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Sebi Revised Guidelines on Share Buyback
Table 1: Comparison of Share Buy Back Regulations in ten largest markets

2013
Analysis of Share Buy-Back Regulation Amendment by SEBI

BFMS TERM PAPER
Group 14 Gaurav Kumar - 1211095

Tamoghna Sadhu - 1211231 Phalguni
8/6/2013

- 1211363
0

Table of Contents

Introduction ..................................................................................................................................... 2 Analysis of Effect on Share Prices after Buy Back Announcement in India .................................. 2 Background of Buyback Regulations in India ................................................................................ 3 Modes of Share Repurchase............................................................................................................ 4 Reasons for repurchase ................................................................................................................... 4 Share Repurchasing Regulations in Other Countries...................................................................... 4 SEBI Amendment 2013 .................................................................................................................. 9 o o o o o o o Reduction in the period allowed for repurchase............................................................... 9 Restrictions on minimum number of shares bought back ................................................ 9 Raising further Capital ..................................................................................................... 9 Creation of Escrow Account ............................................................................................ 9 Window for Odd Lots ...................................................................................................... 9 Future Repurchase ............................................................................................................ 9 Restriction on Trading by promoters
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Testing the Weak Form of Efficiency of Karachi Stock Exchange
    • 4702 Words
    • 19 Pages

    Testing the Weak Form of Efficiency of Karachi Stock Exchange

    Al-Jarrah, M.I., Khamees, B.A. and Qteishat, I.H. (2011). The "Turn of the Month Anomaly" in Amman Stock Exchange: Evidence and Implications. Journal of Money, Investment and Banking, Issue 21, 5-11. Ansari, (2011). Testing Weak Form Stock Market Efficiency on Bombay Stock Exchange of India Tenth International Conference on Operations and Quantitative Management. Awad, I. and Daraghma, Z. (2009). Testing the Weak-Form Efficiency of the Palestinian Securities Market. International Research Journal of Finance and Economics, Issue 32, 7-17. Bashir, T., Ilyas, M. and Furrukh, A. (2011). Testing the Weak-Form Efficiency of Pakistani Stock Markets-An Empirical Study in Banking Sector. European Journal of Economics, Finance and Administrative Sciences, Issue 31, 160-175. Davis, Mark and Etheridge, Alison, (2006). Louis Bachelier 's Theory of Speculation: The Origins of Modern Finance, New Jersey: Princeton University Press, Dholakia. (2009). Stock Market: The Barometer of Economy 's Health. Stock markets, BlogSpot Fama E. (1965). The Behavior of Stock-Market Prices. The Journal of Business, 38(1), 34-105. Gersdorff, N. von, and Bacon, F. (2009). U.S. Mergers and acquisitions: a test of market efficiency. Journal of Finance and Accountancy, 1(8), 1-8. Hamid, K., Suleman, M.T., Shah, S.Z.A. and Akash, R.S.I. (2010). Testing the Weak Form of Efficient Market Hypothesis: Empirical Evidence from Asia-Pacific Markets. International Research Journal of Finance and Economics, Issue 58, 121-133. Haque, A. Liu, H-C and Fakhar-Un-Nisaet. (2011). Testing the Weak Form Efficiency of Pakistani Stock Market-2000 to 2010. International Journal of Economics and Finance, 1(4), 153-162. Hassan, K.M. Al-Sultan, W.S. and Al-Saleem, J.A. (2003). Stock Market Efficiency in the Gulf Cooperation Council Countries (GCC): The Case of Kuwait Stock Exchange. Scientific Journal of Administrative Development, 1(1). 1-21. Worthington, A.C. and Higgs, H. (2003). Weak-form Market Efficiency in European Emerging and Developed Stock Markets. School of Economics and Finance Discussion Papers and Working Papers Series 159, School of Economics and Finance, Queensland University of Technology, Brisbane, Australia. Hudson, R., Dempsey, M. and Keasey, K. (1996). A Note on the Weak Form Efficiency of Capital Markets: An Application of Simple Technical Trading Rules to UK Stock Prices– 1935 to 1994. Journal of banking and finance, 20(6), 1121-1132. Khan, A.Q., Sana, I. and Mehtab, M. (2011). Testing Weak Form Market Efficiency of Indian Capital Market : A case of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). African Journal of Marketing Management, 3(6), 115-127. Levin J, and Fox A.J. (1994), “Elementary Statistics in Social Research (6th edition). New York: Harper Collins College Publishers.…

    • 4702 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Common stock repurchase and market signalling
    • 3287 Words
    • 14 Pages

    Common stock repurchase and market signalling

    the market uses the premium, the target fraction and the fraction of insider holdings as signals…

    • 3287 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Pair Trading Strategy: Short SBIN, Long HDFCBANK
    • 993 Words
    • 4 Pages

    Pair Trading Strategy: Short SBIN, Long HDFCBANK

    Recommended Strategy Short SBIN, Long HDFCBANK on a rupee-neutral basis. Currently, the November Futures of SBIN and HDFCBANK are trading at Rs 1,121.25 and Rs 821.90 respectively, giving a current price ratio (SBIN/HDFCBANK) of 1.380 . We recommend profit booking at the price ratio of 1.216 , keeping a stop loss of 1.502 . The expected return at the target is 11.8%, computed on gross exposure. Over the past 1 month, SBIN has outperformed HDFCBANK as SBIN has decreased by 20.0% as against a decrease of 22.9% in HDFCBANK. As a result, the current price ratio of 1.380 is trading at 2.79 x standard deviations above 20 day mean price ratio. HDFCBANK Price Ratio (SBIN / HDFCBANK)…

    • 993 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Benchmark Prime Lending Rate
    • 4675 Words
    • 19 Pages

    Benchmark Prime Lending Rate

    Starting July 1, 2010, RBI had introduced a new Base Rate system which will set the interest rates for the bankers to lend their borrowers. It is the minimum rate of interest that a bank is allowed to charge from its customers. Unless mandated by the government, RBI rule stipulates that no bank can offer loans at a rate lower than base rate to any of its customers. Before setting the Base Rate System, banks used another rate system called Benchmark Prime Lending Rate (BPLR) to set their lending rates.…

    • 4675 Words
    • 19 Pages
    Good Essays
    Read More
  • Good Essays

    Legal issues in climate change
    • 10942 Words
    • 32 Pages

    Legal issues in climate change

    The burgeoning population in the in the world gives rise to an intense competition for the limited natural resources available. In the name of globalization, most of the nations have unscrupulously exploited these resources which left a devastating impact on the climate .This is evident by the ever rising concentration of pollutants in the atmosphere and the rising number of previously unheard health complications.…

    • 10942 Words
    • 32 Pages
    Good Essays
    Read More
  • Powerful Essays

    Security Analysis & Portfolio Management
    • 7517 Words
    • 31 Pages

    Security Analysis & Portfolio Management

    The traditional views are on the intensive and current market price of security if the current market price security was the above value the analysis recommended same conversely. If the Current market price of the security below the entrance value the customer advise to purchase these traditional view’s have shifted their emphasis to a modern approach which analysis risk and return off a common stock rather than relevant price and dividend esteems.…

    • 7517 Words
    • 31 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Marketing Proposal for Itc Agarbattis
    • 880 Words
    • 4 Pages

    Marketing Proposal for Itc Agarbattis

    Submitted by Kumar Pritam Sinha (B07027) Pankaj Kumar (B07035) Raj Jalan (B07039) Ritesh Agrawal (B07041)…

    • 880 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Sebi Guidelines for Issue of Bonus Shares
    • 842 Words
    • 4 Pages

    Sebi Guidelines for Issue of Bonus Shares

    A Company may issue bonus shares without obtaining prior approval but only after a period of 12 months after a public/rights issue and after safeguarding the rights of fully convertible and partly convertible debentures falling due for conversion within 12 months from the date of bonus issue. A bonus issue should take into consideration the future earning potential of the company, to conserve liquid reserves and to utilise reserves for issuing shares to make paid-up capital correspond to the capital actually employed. A bonus issue is an important financial decision and it should be in conformity with the following guidelines prescribed by SEBI:-…

    • 842 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Sebi Regulations and Guidelines to Investors
    • 13817 Words
    • 56 Pages

    Sebi Regulations and Guidelines to Investors

    This assignment discusses the role played by the Securities and Exchange Board of India (SEBI) as a regulator of Indian capital markets and discusses in depth the capital market reforms initiated by SEBI.…

    • 13817 Words
    • 56 Pages
    Powerful Essays
    Read More
  • Good Essays

    Sebi: Functions and Responsibilities
    • 948 Words
    • 4 Pages

    Sebi: Functions and Responsibilities

    In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI are – to protect the interest of investors in securities and to promote the development of and to regulate the securities market.…

    • 948 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Pasavento Instructions For Zup Pattern

    • 6287 Words
    • 18 Pages

    Pasavento Instructions For Zup Pattern

    the author gets access to the financial markets, use trading terminal MetaTrader 4. The standard indicators included in delivery of the terminal, did not give an opportunity for the analysis of the…

    • 6287 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Buyback of Shares in India
    • 2988 Words
    • 12 Pages

    Buyback of Shares in India

    Buy-Back of Shares 1. Companies Act, 1956: Section 77A of the Companies Act lays down the conditions governing buy-back of shares by a company. Section 77A stipulates that a buy-back can be done only out of free reserves or securities premium account or proceeds of fresh issue of shares or specified securities subject to certain terms and conditions. The conditions to be complied with by the Company for buy-back are: • • Articles of Association (AoA) of the Company provides for buyback of its own shares [Section 77A(2)(a)]. Special resolution should be passed by the shareholders in a general meeting authorizing the buy-back [Section 77A(2)(b)]. If buy-back is less than 10% of paid-up capital and free reserves and has been approved by the Board in a Board meeting, then shareholder resolution is not required. The quantum of shares to be bought-back has to be decided and cannot exceed twenty-five percent of the paid-up capital and free reserves as per last audited Balance Sheet [Section 77A(2)(c)]. The Company has to ensure that the ratio of the debt will be not more than twice the capital and its free reserves after such buyback. [Section 77(2)(d)]. Only fully paid up shares can be purchased [Section 77A(2)(e)]. The buy-back of shares should be in accordance with the regulations laid down by SEBI (for listed companies) and as per the Private Limited Company & Unlisted Public Limited (Buyback of Securities) Rules, 1999 (for non-listed companies) [Section 77A(2)(f) and (g)]. The explanatory statement to the notice of the general meeting should contain complete disclosure of all material facts, necessity of buy-back, security intended to be bought back, amount of buyback and time limit for completion of buy-back and such other disclosures as required under SEBI regulations [Section 77A(3)]. Buy-back has to be completed within 12 months of passing of Board resolution or Shareholders resolution [Section 77A(4)]. Buy-back can be made from existing shareholders on…

    • 2988 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Factors Influencing the Movement of G-Sec
    • 2619 Words
    • 11 Pages

    Factors Influencing the Movement of G-Sec

    On a day-to-day basis, market participants look at many other variables as well e.g. crude prices, commodity prices, GDP growth rates, etc. However, the end implication of these factors has been captured in the statistical study done in this paper. For Example, higher crude or commodity price would result in higher inflation, which has been studied here. A higher GDP growth rate would give a larger scope of RBI to hike rates (in case inflation is high); we have studied the co-relation with Repo and Reverse Repo Rates. Higher investment by FIIs in Indian equities may result in higher rupee liquidity; we have studied the impact of system liquidity on yield levels.…

    • 2619 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Minor Project
    • 4848 Words
    • 20 Pages

    Minor Project

    I hereby declare that this minor Report entitled “EFFECT OF EVENTS ON INTERNATIONALLY LISTED STOCK: A STUDY OF INDIAN ADRs” is my own work. The work is original except, where indicated by special references and citations in the text and the same has not been submitted to any other Institute for the award of any other degree.…

    • 4848 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Irda
    • 3096 Words
    • 13 Pages

    Irda

    b) To promote, regulate and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto c) Conduction of insurance businesses across India in an ethical manner.…

    • 3096 Words
    • 13 Pages
    Powerful Essays
    Read More

Related Topics