Buy back of its own shares by a company has recently been permitted by a central government ordinance. This article studies the significance of buy-back, the abuses to which it is open, and the provisions of the ordinance. It points out the defects of the ordinance and suggests that a “treasury share” mechanism would be a good means to help both the firms and their shareholders.
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References
1.
RaghunathanR, “Sebi Chief and the Buy-back Ordinance”, Economic Times, 3 December 1998.
