Regulation 4 - Company may buy-back its own shares or other specified securities - Securities and Exchange Board of India (Buy Back Of Securities) Regulations, 1998

Company may buy-back its own 1 [shares or other specified securities] 4. (1) A company may buy-back its 2 [shares or other specified securities] by any one of the following methods :- (a) from the existing 3 [security-holders] on a proportionate basis through the tender offer; (b) from the open market through- (i) book-building process, (ii) stock exchange; (c) from odd-lot holders: 4 [Provided that no offer of buy-back for fifteen per cent or more of the paid up capital and free reserves of the company shall be made from the open market.] (2) A company shall not buy-back its 5 [shares or other specified securities] from any person through negotiated deals, whether on or of the stock exchange or through spot transactions or through any private arrangement. (3) Any person or an insider shall not deal in securities of the company on the basis of unpublished information relating to buy-back of 6 [shares or other specified securities] of the company. 7 [(4) A company shall not make any offer of buy-back within a period of one year reckoned from the date of closure of the preceding offer of buy-back, if any.] ********** 1 Substituted by the SEBI (Buy-back of Securities) (Amendment) Regulations, 2004 w.e.f. 18-06-2004 for the words specified securities , which had earlier been substituted for the word shares by the SEBI (Buy-back of Securities) (Amendment) Regulations, 1999, w.e.f. 21-09-1999. 2 Substituted by the SEBI (Buy-back of Securities) (Amendment) Regulations, 2004 w.e.f. 18-06-2004 for the words specified securities , which had earlier been substituted for the word shares by the SEBI (Buy-back of Securities) (Amendment) Regulations, 1999, w.e.f. 21-09-1999. 3 Substituted for the word shareholders by the SEBI (Buy-back of Securities) (Amendment) Regulations, 1999, w.e.f. 21-09-1999. 4 Inserted by SEBI (Buy-back of Securities) (Amendment) Regulations, 2013 w.e.f. 08-08-2013. 5 Substituted by the SEBI (Buy-back of Securities) (Amendment) Regulations, 2004 w.e.f. 18-06-2004 for the words specified securities , which had earlier been substituted for the word shares by the SEBI (Buy-back of Securities) (Amendment) Regulations, 1999, w.e.f. 21-09-1999. 6 Substituted by the SEBI (Buy-back of Securities) (Amendment) Regulations, 2004 w.e.f. 18-06-2004 for the words specified securities , which had earlier been substituted for the word shares by the SEBI (Buy-back of Securities) (Amendment) Regulations, 1999, w.e.f. 21-09-1999. 7 Inserted by SEBI (Buy-back of Securities) (Amendment) Regulations, 2013 w.e.f. 08-08-2013.