[Beerinkol]

Hello friends, I want to know what is SEBI new regulation of buy back shares? What is buy back of shares? How buy back is done? Is there is any mechanism? Your answers will be appreciated. Thanks in advance.

[Ifroham4]

Hey dear, SEBI recently change the buyback period from 9 months to 3 months.SEBI decision is welcome by investors. Company generally announce buy back in order to have bounce in share price .SEBI made mandate it to be done in 3 months.

[tgs]

Hello friend, buy back is done when there is enough equity floats in the market ,then company decide to buy back its shares in order to have goo EPS and PE ratio. Buy back can run negative sentiments to investors. The pricing at which company buy back should need to more than current market price of share.

[NeroASERCH]

Hey dear, buy back id done through three ways:
1. Fixed price offer: company fix a price and buys on a particular share price.
2. Book building method: price decides upon the bid price and arrives at a band of a price under company buy back share.
3. Open offer: Companies buy back its share through online mechanism at buy back whatever price invests.