Buyback withdrawals by companies pose headache for Sebi, investors

PC Jeweller becomes the latest company to withdraw share buyback proposal; Shares tank

The withdrawal of share buyback programmes by companies is posing a new headache for the Securities and Exchange Board of India (Sebi) and investors. Shares of troubled PC Jeweller lost a quarter of their value after the jewellery retailer said it was unable to go ahead with its proposed Rs 4.2-billion share repurchase programme. In May 2018, the company had announced its buyback plan to stem a share slide in its stock price.

In recent months, two other companies, Vakrangee and Kwality, had resorted to similar moves as possible attempt to put an end to the drop in their stock prices,