SEBI operationalises ISIN-level freezing of promoter holdings in buybacks
SEBI issued a circular operationalising freezing of promoter and promoter group holdings at ISIN level under Regulation 24(i)(ea) of Buy-back Regulations 2018.
SEBI has operationalised a mechanism to freeze promoter and associated holdings at the ISIN level during buybacks. This tightens enforcement of the prohibition on promoter dealings around buyback events and shifts operational burden to depositories, RTAs, and issuers to ensure timely, accurate freezes.
Affects buyback execution, promoter dealings, and depository operations; failure to freeze correctly can trigger regulatory action against issuers and intermediaries.
Action Required
Update buyback compliance workflows and depository controls to support ISIN-level freezing of promoter holdings during buyback windows.
Structural change to buyback compliance infrastructure with direct impact on issuers, promoters, and market infrastructure institutions.
Assess readiness of buyback advisory, depository interface, and promoter-monitoring controls to comply with ISIN-level freezing. Update SOPs, test freeze/unfreeze workflows, and document reconciliation checks with depositories.
“SEBI circular operationalising freezing of promoter and promoter group holdings at the ISIN level under Regulation 24(i)(ea) of the SEBI (Buy-back of Securities) Regulations, 2018.”