How to apply for Buyback through the open market?
- A buyback is a process in which a company buys back its own shares from its current shareholders. This can be done through a tender offer or by purchasing shares on the open market.
- Previously, only a tender offer ensured that the company would be the sole buyer of shares in a buyback. Selling shares in the open market during the buyback period carried uncertainty regarding the company's repurchase. However, in order to facilitate open market offers, exchanges have introduced a series called BO on NSE (PDF). These series allow clients to participate directly in open buybacks through their broker's platform. To learn more about open market buyback, refer to NSE FAQs (PDF).
- To participate in a buyback through the open market and sell shares directly to the company send an email on [email protected]
- The buyback through the open market can only be conducted between 9:45 AM to 3:00 PM.