Sebi on Friday granted exemption to state-run NTPC from certain buyback norms for the proposed merger of wholly-owned subsidiaries with itself.
In October, NTPC had filed an application with Sebi to seek exemption from the strict enforcement of the buyback norms. The application had been necessitated on account of a scheme of amalgamation providing for the merger of NTPC’s wholly-owned subsidiaries with itself.
Sebi considered NTPC’s application and noted the proposed buy-back will be in the interests of investors as the shareholders will benefit from return of surplus cash through the buy-back programme. In November 2019, NTPC’s board had approved a scheme of amalgamation of Nabinagar Power and Kanti Bijlee Utpadan Nigam with NTPC.
