Why can't I apply for all Buybacks on FYERS?
At FYERS, we enable our users to apply for Tender Offer Buybacks directly through the 'My Account' portal. To gain clarity on the application process, refer to this article. However, Open Market Buybacks cannot be applied for via FYERS.
Tender Offer Buyback: This is a method where a listed firm proposes to repurchase its shares at a predetermined price from its shareholders. Applications for such buybacks can be conveniently placed using the 'My Account' portal. For information on active and upcoming buybacks, we recommend visiting the NSE Website.
For instance, a recent tender offer buyback was conducted by TCS. For an in-depth look at this, visit here.
Open Market Buyback: This type of buyback occurs when a company procures its shares directly from sellers on the stock exchange. The duration of the buyback will be specified by the company, which can span several months. While the maximum buyback price is communicated by the company, not every seller might receive this maximum rate. Since open market buybacks transact in the secondary markets, they are not categorised under 'Buyback' in the 'My Account' portal on FYERS. As a result, such buybacks cannot be applied for via our platform. For insights into impending open market offers, you can consult the SEBI Website.
A live example of an open market buyback is the one initiated by Infosys. For a comprehensive understanding, kindly visit here.