SAT SETS ASIDE SEBI ORDER ON D-LINK

SAT has set aside the impugned order of the SEBI board barring D-Link India Ltd from dealing in securities for one month, saying it had provided misleading information to the investors relating to the buyback of its shares SAT has held that a company is under no obligation to buyback its securities even after its shareholders have passed a special resolution authorizing it to do so. Section 77 A of the Companies Act is only an enabling provision. Moreover, Regulation 15 of the buyback regulation read with regulation 8 requiring the company to make a public announcement, if the company wanted to buyback makes it abundantly clear that it is only when the second step of making an offer to the shareholders has been taken that the company is obliged to go through the buyback.