Mumbai, Oct 28 (UNI) Market regulator Securities and Exchange Board of India (SEBI) has allowed company owners to increase their majority shareholdings up to 75 per cent from the earlier barrier of 55 per cent by buying up to five per cent of their shares each year in the open market.
Owners will not be able to acquire shares through bulk, block, negotiated deals or preferential allotments, SEBI said.
SEBI said company founders no longer needed to seek an exemption for an increase of their holdings of up to five per cent per annum due to share buybacks. The announcements followed a plunge in Indian shares this month to three-year lows.
The 30-share BSE index has dived more than 20 per cent in four sessions and is down 58 per cent this year, caught up in a global economy turmoil that has seen investors aggressively cutting their exposure to emerging markets.
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