BUY-BACK OF SHARES: LEGAL FRAMEWORK AND CORPORATE STRATEGY
AUTHOR – FAISAL IMAM, STUDENT AT AMITY LAW SCHOOL, AMITY UNIVERSITY
BEST CITATION – FAISAL IMAM, BUY-BACK OF SHARES: LEGAL FRAMEWORK AND CORPORATE STRATEGY, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (13) OF 2025, PG. 616-620, APIS – 3920 – 0001 & ISSN – 2583-2344
The buy-back of shares has evolved as a key instrument of financial and corporate restructuring in modern company law. It enables a company to repurchase its own shares, reduce outstanding equity, and enhance shareholder value through redistribution of surplus funds. In India, the legal framework governing buy-backs is primarily embedded in Sections 68 to 70 of the Companies Act, 2013, supported by the SEBI (Buy-Back of Securities) Regulations, 2018. This paper examines the statutory provisions, regulatory compliance requirements, corporate motivations, and strategic implications of buy-back transactions. It further explores judicial pronouncements, accounting treatment, and policy debates to assess whether buy-backs serve as a legitimate corporate governance mechanism or merely as a financial engineering tool.
Keywords : Buy-back of shares; Companies Act, 2013; SEBI (Buy-Back of Securities) Regulations, 2018; Corporate governance; Shareholder value, Earnings per share,