Which government authority monitors the buyback of shares?

In India, it is SEBI (Securities and Exchange Board of India) which monitors the buyback of shares. This means that apart from ensuring that a company has to follow the rules or law as instructed within the Companies Act, as well as it also has to follow the norms enforced (it is mandatory i.e. compulsory to follow) by SEBI.

SEBI has enforced a norm that covers the Buyback of Securities Regulations. It was initially implemented in 1998 and later amended in 2018.

It is important to note that the Companies (Amendment) Ordinance (October 31, 1998, and January 7, 1999) have allowed companies to buy back their own shares subject to regulation laid down by SEBI. The ordinance lays down the provisions concerning the buyback of shares. Section 77A of the companies act empowers a company to purchase its own share or other specified securities in certain cases.