Relaxation in Regulation 24(i)(f) of the SEBI (Buy-back of Securities) Regulations, 2018 due to the COVID 19 pandemic

Last updated: 24 April 2020

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The Securities and Exchange Board of India (SEBI) has introduced a temporary relaxation to the SEBI (Buy-back of Securities) Regulations, 2018, in response to the COVID-19 pandemic. Previously, companies were restricted from raising further capital for one year after a buy-back period. This period has now been reduced to six months, aligning with the Companies Act, 2013. This change aims to provide companies with quicker access to capital and is effective immediately until December 31, 2020.

Securities and Exchange Board of India CIRCULAR No. SEBI/HO/CFD/DCR2/CIR/P/2020/69 Dated: April 23, 2020 To All Listed Entities All Recognized Stock Exchanges All Registered Merchant Bankers Sir / Madam, Sub:Relaxation in Regulation 24(i)(f) of the SEBI (Buy-back of Securities) Regulations, 2018 due to the COVID 19 pandemic 1. Considering the developments relating to the COVID 19 pandemic, SEBI has received a number of suggestions for relaxation of conditions with respect to

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FAQ :

The circular temporarily reduces the restriction period for raising further capital after a buy-back from one year to six months.

The relaxation is due to the COVID-19 pandemic, aiming to help companies access capital more quickly.

Regulation 24(i)(f) of the SEBI (Buy-back of Securities) Regulations, 2018 has been relaxed.

This relaxation is applicable until December 31, 2020.

No, this is a temporary relaxation applicable only until December 31, 2020.

The new restriction period is six months from the expiry of the buy-back period.

Notification No : CIRCULAR No. SEBI/HO/CFD/DCR2/CIR/P/2020/69
Source : https://www.sebi.gov.in/legal/circulars/apr-2020/relaxation-in-regulation-24-i-f-of-the-sebi-buy-back-of-securities-regulations-2018-due-to-the-covid-19-pandemic_46547.html

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