The Securities and Exchange Board of India (SEBI) is likely to discuss various market regulations, specifically the rules on share buyback norms, in its board meeting on December 20, sources told CNBC-TV18. The market regulator had released a consultation paper last month on share buyback and sought comments by December 1.

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The market regulator has proposed changes concerning the maximum limit, quantum, and the time taken to complete buybacks. The development comes days after Housing Development Finance Corporation (HDFC) CEO Keki Mistry-led sub-group committee submitted buyback proposals on October 30.

Minimum threshold for buyback via stock exchanges can be raised to 75 percent from 50 percent. The buyback via stock exchanges can be done only in frequently traded shares, it has been proposed, according to the consultation paper.

Also read: Share buyback completion in 22 days to 5% limit for open offer: A look at SEBI proposal to change norms

The sub-group panel also proposed to introduce a glide path concerning the reduction in the maximum limit and the time for completion of the buyback offer under the stock exchange mechanism, according to the consultation paper. Currently, the buyback max limit is 15 percent of the paid-up cap and free reserves of the company.

SEBI board will also to discuss regulations related to disclosure of material event and information, sources added. The market regulator is also likely to clear regulations related to strengthening of governance of market infrastructure institutions (MIIs).

Also read: Shareholders, not firms, to bear share buyback tax burden. Here's what Sebi's proposal means for you

First Published:Dec 20, 2022 11:41 AM IST