Companies can repurchase shares using various methods:
A tender offer involves the company proposing to acquire shares from existing security holders at a specified price.
Open market repurchases are executed via the stock exchange, often following a book-building process.
Repurchase programs may also specifically target odd-lot holders (small shareholders).
However, purchasing shares through negotiated deals on the stock exchange is neither a standard nor an allowed method for buybacks, as it is considered insider trading.
| List-I (Reasons) | List-II (Examples) |
|---|---|
| (A) Contract contingent on marriage | (I) A and B contract to marry each other. Before the marriage, A goes mad. |
| (B) Repudiation of a voidable contract | (II) A agrees to sell B 100 bags of wheat. Before delivery, the government bans private trading. |
| (C) Supervening impossibility | (III) A contracts to give a loan if B marries C. C dies unmarried. |
| (D) Subsequent illegality | (IV) A forces B to sell his car worth 15,00,000 for 5,00,000. B rescinds the contract. |