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Buyback alone won't help, couple it with performance, exhorts Union official

Companies could not be given total freedom to buyback shares in a bid to rejuvenate the capital market, T S Krishnamurthy, secretary, union department of company affairs, said in Bombay today.

Addressing a seminar on "Rejuvenating the Capital Market and Restoring Investor Confidence", organised by the Southern India Regional Council of the Institute of Company Secretaries of India, he said every measure aimed at giving a new lease of life to the capital market should be subjected to regulations, restrictions and rules.

He said the Centre was committed and very serious in reviving the economy in general and the capital market in particular, but buyback alone would not be enough.

Stating that legislations could only provide the means, he said no amount of legislative measures could improve the market as it depended on the performance of the companies.

Incidentally, buyback of shares by companies was one of the strategies suggested by the Federation of Indian Chambers of Commerce and Industry to revive the market.

UNI

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