SEBI CANNOT DICTATE BUYBACK PRICE: SAT

While allowing telecom software services firm Sasken to go ahead with its Rs.40 crore buyback offer, Securities Appellate Tribunal (SAT) has said that market regulator SEBI has no right to advise a company regarding the price it needs to put for the buyback offer. The tribunal said the company has already informed SEBI that the buyback will be from open market through the stock exchange mechanism, which obviously means that the shares will be purchased at the prevailing price as determined by the system subject to maximum price. “This being the position, there was hardly a need to tell the company to place its but orders at the market price,”