The Securities and Exchange Board of India (SEBI) has issued a directive requiring depositories to finalize an operational framework for freezing promoter and promoter group holdings at the ISIN level. This move is specifically designed to streamline procedures during share buyback processes.
Depositories have been given a firm deadline of August 1 to complete the necessary technical upgrades and infrastructure readiness. This mandate ensures that systems are equipped to handle the restrictive measures effectively, preventing unauthorized transactions during the buyback window.
By implementing this ISIN-specific control, the regulator aims to bring greater transparency and rigor to the corporate action process. It acts as a safeguard, ensuring that promoter stake modifications remain compliant with regulatory standards during sensitive financial events.
Market participants and depository officials are expected to prioritize the system integration over the coming weeks to meet the compliance target. Failure to implement these changes could result in operational bottlenecks when companies initiate their buyback programs.
