(MC)
Markets regulator Sebi exempted state-run Oil India from complying with buyback regulations with regard to its proposed 5.04 crore share purchase programme. The order comes after the PSU filed an application in December with the Securities and Exchange Board of India (Sebi) seeking exemption from the strict enforcement of the buyback norms.
The application has been necessitated on account of transfer of 3,33,20,401 equity shares of Oil India, which were held by the promoter (government), to the asset management company of the Central Public Sector Enterprise Exchange Traded Fund (CPSE–ETF) on December 4, 2018.According to Sebi, transfer of these equity shares by the promoters had occurred during the period between the date of passing the resolution of the board of directors approving the offer of buyback of securities of the company (November 19, 2018) and the closure of such offer.
Sebi’s buyback rules impose an obligation on the company to ensure that its promoter(s) do not deal in the shares of the company in the stock exchange or off-market, including transfer of shares among themselves during the period from the date of passing the resolution of the board of directors till closing of the buyback offer.
