A company can repurchase shares through the following methods:
Tender offer allows the company to offer to buy back shares from existing security holders at a specified price.
Open market repurchases can be done through the stock exchange, following a book-building process.
Odd-lot holders (small shareholders) can also be targeted in a repurchase program.
However, buying shares through negotiated deals on the stock exchange is not a standard method for share buybacks. This method is not allowed as it would be considered a form of insider trading.
List-I: Sections | List-II: Matters |
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(A) Sec. 227 | (I) Right of auditor to attend general meetings |
(B) Sec. 226 | (II) Reading and inspection of auditor’s report |
(C) Sec. 231 | (III) Qualifications and disqualifications of auditors |
(D) Sec. 230 | (IV) Powers and duties of auditors |