Buyback
Buyback of shares or stock buyback refers to the corporate action where a company repurchases its own shares from the existing shareholders. During the buyback of shares, the price of shares is usually higher than the market price. Buyback of shares can be done either through the open market or through tender offer route. Under the open market mechanism, the company can buy back its shares from the secondary marker. On the other hand, during buyback of shares via tender offers, shareholders can submit or tender portions of their shares within a stipulated time. Avail the opportunity to earn premium with buyback of shares!
Yes customers can modify the buyback order except Takeover as the modification/ cancellation is not allowed. There are two types of Modifications allowed namely:-
- Lower Modification: In this case, the additional buyback shares will be on hold till settlement.
- Upper Modification: In this case, you will have to place a new buyback order for the additional shares.
Yes, customers can cancel the order. However, they can cancel the buyback orders only before the end date of the issue. There shares will be released after the settlement cycle is over.