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Stock market regulator SEBI has brought out detailed guidelines on the disclosures that are required to be made by companies in their letter of offer for buy back of securities.
SEBI also prescribed a standard format for a letter of offer in a buyback.
The circular comes into force with immediate effect.
The disclosures include details of the buyback; its necessity; management view on the likely impact of the buyback; basis of offer price and the source of funds for the buy back; change in capital structure and shareholding pattern after the buyback; financial information about the company; procedure for tender/offer and settlement and collection centres; taxation issues; process and methodology for the buyback and other details required as per the extant regulations.
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