What is Buyback of shares?

Share or stock buyback is the practice where companies decide to purchase their own share from their existing shareholders either through a tender offer or through an open market.

How do companies buy back their shares from share holders?

Companies buy back their shares by two methods, either by the Open Market or through Tender offer.

Open Market offer: Companies can buyback their shares directly from open market by the sellers. This buyback can last for months as disclosed by the company to the SEBI.

Tender Market offer: Companies offer a buy back of its shares at a particular price at which investors can apply. The tender market buybacks can be applied through stock broker’s platforms.

What is the Process to tender Buyback of shares through ProStocks web application for POA clients?

ProStocks offer buyback of shares through its trading application.

1. Click on BIDS tab where Buy Back option will be visible.
   
2. On clicking the Buy Back tab a new page will be open where we need to click on apply.
   
3. Mention the Qty for placing the Bid and click on submit.
   
4. Orders will be visible in the order book with the Status.
   

What is the Process to tender Buyback of shares through ProStocks for NON-POA?

1. Click on BIDS tab where Buy Back option will be visible.
   
2. On Buyback page the EDIS button will visible, Click on the EDIS button.
   
3. A new pop up comes where we need to Generate TPIN.
   
4. Post generation of TPIN we need to Authenticate on the CDSL page.
   
5. After the Authentication from CDSL the Qty will be visible on Tenderable qty and then we can apply
   
6. Mention the Qty which needs to be given in Buyback and click on Submit.
   

Is there any option to cancel the order after it is placed?

No, you cannot cancel the order once it is placed.

How will I get to know that my Buy Back offer is accepted by the company?

If the tender is accepted ProStocks will inform you through the contract note about the number of shares accepted by the company as it h3takes 7-10 working day after the close of tender offer.

What are the Charges for Buyback?

Brokerage of Rs.25 along with DP and Standard regulatory charges.