Sebi norms for buyback offers

Securities and Exchange Board of India SEBI has prescribed a 8216;8216;standard letter format8217;8217; for buyback offers seeking additional disclosures to enable the shareholders to make an informed decision on retaining shares or for exiting from a company.

The offer letter should discuss the impact of the buyback on the profitability of the company and any change in control in the management structure pursuant to the offer, SEBI said in a notification to merchant bankers today.

The offer for buyback should remain open for minimum 15 days to a maximum 30 days. These letters should include management discussion and analysis on the likely impact of the offer on the company, SEBI said.