SEBI proposes review of buyback norms for cos with NBFC, HFC as subsidiaries
   Date :24-May-2019

Regulator SEBI on Wednesday proposed changes to share buyback norms for companies having non-banking financial companies and housing finance companies as subsidiaries. A discussion paper has been issued to seek suggestions relating to review of conditions for buyback of securities.
Sebi’s Primary Markets Advisory Committee (PMAC) had made certain recommendations with respect to buyback of shares for companies having Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs). According to the discussion paper, the committee has proposed that post buyback debt to capital and free reserves ratio of 2:1 should be considered on consolidated basis, excluding subsidiaries that are regulated and have AAA ratings.