What is a share buyback (acquisition of treasury shares)?

A share buyback is when a company buys back shares it has issued. Under the Commercial Act, it may acquire them within the limit of distributable profits by prescribed methods such as purchases on the exchange, and listed companies may also acquire them indirectly through trust agreements.

To prevent distortion of market prices, listed companies are subject to restrictions on the timing, quantity and price of acquisitions, and they must file a major matters report when the board resolves on a buyback and a results report when the acquisition is completed.