Governance of Share Buy-backs and Market Outcomes: A Comparative Regulatory Perspective

Abstract

This study aims to provide a comparative analysis of buy-back laws in the US, UK, and India with an emphasis on how well they promote
financial stability, improve shareholder welfare, and allow for corporate conduct flexibility. Share buy-back, a financial restructuring vehicle,
gained international momentum in the 1980s and 1990s. India legalized buy-back in 1998 through an amendment to the Companies Act, 1956.
The USA and UK have established buy-back regimes, with the USA having SEC Rule 10b-18 (1982) and the UK having buy-backs governed
by the Companies Act, 1985. India's regulatory regime is still stricter than the USA and UK. This research evaluates India, the USA, and the
UK's buy-back regulations for their effectiveness in fostering financial stability, shareholder welfare, and flexibility in corporate conduct.
Results show that India's buy-back provisions are effective in maintaining financial discipline but may call for flexibility towards general
corporate adaptation. The study suggests that U.S. disclosure standards should be more rigorous, shareholder approval for high-value buybacks,
UK procedural delays should be reduced, solvency requirements should be more flexible, and Indian buyback approval procedures should be
simplified for more transparency.