A stock buyback is when a company repurchases its own shares from existing shareholders, reducing the total number of shares in the stock market.

Things to keep in mind about buybacks:

• If you’re unsure about eligibility, check the company’s record date since only shares held in demat by then qualify.
• If only a part of your shares are accepted, it’s due to the company’s acceptance ratio, and the remaining shares will remain in your demat.
• If there’s a delay in refund or payment, it usually takes 7–10 working days after the buyback closes to get shares/money settled.
• If you’re confused about taxation, remember income from listed buybacks is tax-free in the hands of investors (the company pays tax).