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Core Purpose

Notification of the Securities and Exchange Board of India (Buy-Back of Securities) (Second Amendment) Regulations, 2024, further amending the SEBI (Buy-Back of Securities) Regulations, 2018.

Detailed Summary

By notification No. SEBI/LAD-NRO/GN/2024/210 dated 20 November 2024, the Securities and Exchange Board of India, exercising powers under sub-sections (1) and (2) of section 11 and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with clause (f) of sub-section (2) of section 68 of the Companies Act, 2013 (18 of 2013), made the SEBI (Buy-Back of Securities) (Second Amendment) Regulations, 2024, effective from the date of publication in the Official Gazette. The amendments to the SEBI (Buy-Back of Securities) Regulations, 2018 include: in regulation 4(ii)(a) and (b), replacing "sets out a lower amount" with "is lower"; in regulation 4(iv)(a), inserting a proviso that shares held by promoter/promoter group members who declare their intention not to participate in a buy-back shall be excluded when computing the entitlement ratio; in regulation 17(ii), substituting "record date" with "date of public announcement"; in regulation 24(i)(b), inserting an exception for discharge of subsisting obligations through conversion of warrants, stock options, sweat equity or preference shares/debentures into equity shares, with a proviso requiring disclosure of such obligations' details and potential impact in the public announcement; and corresponding disclosure additions to Schedule II, III and IV requiring disclosure of subsisting obligations, the entitlement ratio for small and general shareholders, and a web-link to the Registrar and Share Transfer Agent. The Regulations of 2018 were originally notified on 11 September 2018 (No. SEBI/LAD-NRO/GN/2018/32) and had previously been amended in 2019, 2021 and 2023. The notification is signed by Babitha Rayudu, Executive Director.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-MH-E-20112024-258784 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 930] NEW DELHI, WEDNESDAY, NOVEMBER 20, 2024/KARTIKA 29, 1946 7490 GI/2024 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III-SEC.4] SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 20th November, 2024 SECURITIES AND EXCHANGE BOARD OF INDIA (BUY-BACK OF SECURITIES) (SECOND AMENDMENT) REGULATIONS, 2024 No. SEBI/LAD-NRO/GN/2024/210.—In exercise of the powers conferred by sub-sections (1) and (2) of section 11 and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with clause (f) of sub-section (2) of section 68 of the Companies Act, 2013 (18 of 2013), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, namely:- 1. These regulations may be called the Securities and Exchange Board of India (Buy-Back of Securities) (Second Amendment) Regulations, 2024. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, - I. in regulation 4, - i. in sub-regulation (ii), - 1. in clause (a), the words "sets out a lower amount" appearing after the words and symbol "statements of the company, whichever” and before the symbol ":", shall be substituted by the words “is lower”; 2. in clause (b), the words "sets out a lower amount" appearing after the words and symbol "statements of the company, whichever” and before the words and symbol ", after excluding financial statements", shall be substituted by the words "is lower"; ii. in sub-regulation (iv), in clause (a), - 1. the symbol ";" appearing after the words "tender offer" shall be substituted by the symbol ":"; 2. after the existing clause, the following new proviso shall be inserted, namely,- "Provided that in case any member of the promoter / promoter group has declared its intention to not participate in the buy-back, the shares held by such member of the promoter / promoter group shall not be considered for computing the entitlement ratio." II. in regulation 17, in sub-regulation (ii), the words "record date" shall be substituted by the words "date of public announcement"; III. in regulation 24, in sub-regulation (i), in clause (b), i. after the words “made under these regulations” and before the symbol “;”, the symbol and words ", except in discharge of subsisting obligations through conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares" shall be inserted; ii. the symbol ";" shall be substituted with the symbol ":"; iii. after the existing clause, the following new proviso shall be inserted, namely,- "Provided that the relevant details and the potential impact of such subsisting obligations, if any, shall be disclosed in the public announcement." IV. in Schedule II, in the table, in the column titled "content", after item (ii), the following new item shall be inserted, namely,- "(iii) Disclosures of the relevant details and the potential impact of subsisting obligations, if any, shall be made." V. in Schedule III, in the table, in the column titled “content”, after item (iii) of the existing paragraph, the following new paragraph shall be inserted, namely,- "Further, the cover page of the Letter of Offer should explicitly cover following details- i. the entitlement ratio for small and general shareholders; ii. web-link to website of the Registrar and Share Transfer Agent for shareholders to check their entitlement under the buyback." VI. in Schedule IV, in the table, in the column titled “content”, in the existing item (iii),- i. in sub-item (xvii), the symbol "." appearing after the words "time to time" shall be substituted with the symbol ";"; ii. after sub-item (xvii), the following new sub-item shall be inserted, namely,- "(xviii) The relevant details and the potential impact of subsisting obligations, if any." BABITHA RAYUDU, Executive Director [ADVT.-III/4/Exty./699/2024-25] Footnotes: 1. The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 were published in the Gazette of India on September 11, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/32. 2. The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 were subsequently amended on: a) July 29, 2019 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/26. b) September 19, 2019 by the Securities and Exchange Board of India (Buy-Back of Securities) (Second Amendment) Regulations, 2019 vide No. SEBI/LAD-NRD/GN/2019/33. c) August 3, 2021 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30. d) February 7, 2023 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/120. e) May 17, 2024 by the Securities and Exchange Board of India (Buy-Back of Securities) (Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/180. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SARVESH KUMAR Digitally signed by SARVESH KUMAR SRIVASTAVA SRIVASTAVA Date: 2024.11.20 21:32:17 +0530

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