Neutral impactCorporate Action
Sebi directs depositories to freeze promoter holdings during buyback period, new rules explained
Economic Times 2 hrs ago·22 Jul 2026, 1:06 am
India's market regulator has introduced new rules for company buybacks. During a buyback period, promoters' shares will be frozen, meaning they cannot sell or transfer these shares. This change aims to bring more transparency and fairness to the buyback process. By restricting promoters from selling their shares during a buyback, the regulator hopes to prevent any potential misuse of the process. Investors should be aware of these new rules as they may impact how companies conduct buybacks in the future. The new system will be in place starting August 1, and it will be interesting to see how it affects the market.
Key takeaways
- Category: Corporate Action.
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