Question

Which of the following statements is true regarding SEBIs recent regulations for share buyback?
The new buyback norms aim simplify the language and remove inconsistencies
Under new norms, more clarity would be provided on various aspects, including on the requirement to make public announcements.
A company can undertake buyback of shares out of its free reserves and securities premium account
All of the above
Only 2) and 3)

Answer 1

SEBI plans to revise the regulations for share buybacks wherein more clarity would be provided on various aspects, including on the requirement to make public announcements. SEBI has carried out a review of the current buyback norms in order to simplify the language and remove inconsistencies. A company can undertake buyback of shares out of its free reserves and securities premium account.