Sebi asks cos to inform bourses prior to board meet on buybacks

To ensure more transparency, Sebi has asked listed companies to inform stock exchanges at least two working days in advance about board meetings on proposals related to buyback of securities, voluntary delisting and fund raising. The move is aimed at bringing in greater transparency in the business affairs of the listed firms.

Under the new norms, <g data-gr-id="19">prior</g> intimation of a board meeting is required to be forwarded to the stock exchanges. “At least two working days advance notice (excluding the date of intimation and date of meeting) to stock exchange about the board meeting for considering the proposals related to buyback of securities, voluntary delisting, fund raising including determination of issue price,” Sebi has directed to listed firms.

In case of financial results, at least five days’ advance notice, before consideration of such proposal of the company, is required. For any alteration in the date of payment of interest or nomenclature of any securities listed on the stock exchange, listed firms will have to inform bourses at least 11 working days in advance about the board meetings on such proposals.