Last week, the state- owned power generation company had approached Sebi seeking an exemption from one of its rules which bars a company from announcing buyback program pending any scheme of amalgamation.
The board of NTPC last year had approved a scheme of merger of two wholly- owned subsidiaries of NTPC— Nabinagar Power Generating Company and Kanti Bijlee Utpadan Nigam — with itself.
NTPC submitted to Sebi that there is no new issuance of equity shares or change in the shareholding pattern of the company following the scheme of amalgamation. Besides, the buyback program is in the interests of investors as the shareholders of the company will benefit from return of surplus cash.
“I find that the requirement of Regulation 24(ii) of the Buy–back Regulations 2018 can be viewed as a procedural requirement having regard to the facts of the present Application,” Sebi whole time member G Mahalingam said in his order on Friday.
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