BUYBACK PROPOSAL GETS MoF GO-AHEAD
Article Abstract:
The Ministry of Finance has given clearance for the buy-back proposal circulated by the Department of Company Affairs (DCA) without recommending any changes. DCA's buyback proposal suggests that buyback should be allowed only for equity restructuring and not for treasury operations. The proposal allows firms to float public issues for funding buyback but at the same time, restricts unlimited buybacks. The limit for buyback will be 25 percent of capital and reserves. In order to prevent duplicate share scams, the proposal has made it compulsory to destroy the shares bought back. The debt-equity ratio after buy back should be maintained at 2:1. (gs)
Comment:
India: Ministry of Finance gives clearance for buy-back proposal circulated by Department of Co Affairs without any changes
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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DCA ALTERS PROPOSALS ON BUYBACK, OFFICIALS' POWERS
Article Abstract:
Department of Company Affairs (DCA) has presented a modified proposal on buyback system and officials' power to the Cabinet for the approval. The proposal seeks for freeing of inter- corporate investments and sweat equity for all firms. It has suggested for dropping out the case by case clearances procedure in buy back system and canceling judicial powers of search and seizure with the DCA officials. It has recommended for setting up of an investor protection fund and asked for a public finance status to be given for Industrial Development Financial Corporation (IDFC). (gs)
Comment:
India: Department of Company Affairs has presented modified proposal on buyback sys & officials' power to Cabinet for approval
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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COS ALLOWED TO BUY BACK UP TO 20% OF ISSUANCES ABROAD
Article Abstract:
Indian corporates have been permitted to buy back up to 20 percent of their overseas issuance without any prior approval. They have been permitted to use dollar resources placed abroad, including loans mobilised through external commercial borrowings, to fund the buyback. The corporates will also be allowed to use dollar surpluses in their Export Earners Foreign Currency account to fund the buyback. The companies can also mobilise funds in the domestic market to fund the buyback. (khr)
Comment:
India: Corporations have been permitted to buy back up to 20% of their overseas issuance without any prior approval
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
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