Cyient has announced a clarification regarding its recent proposal for the buyback of equity shares, initially disclosed on 23 April 2026. The company clarified that while its securities are not registered under Section 12 of the Securities Exchange Act of 1934 in the United States, the requirement for approval from the U.S. Securities and Exchange Commission (SEC) remains unchanged.
The Board of Cyient noted the necessity of obtaining exemptive relief from the SEC due to the shareholding of US residents in the company’s equity shares. This step is essential to address the conflicting regulatory requirements between Indian and U.S. laws concerning tender offer buybacks. The company plans to apply for this relief to ensure compliance with both jurisdictions.
This clarification comes in the wake of the company’s post-board meeting announcement, where the need for SEC approval was initially mentioned. Cyient’s move to seek exemptive relief underscores the complexities involved in navigating international regulatory landscapes, especially when dealing with cross-border securities and shareholder interests.
Cyient’s proactive approach in addressing these regulatory conflicts highlights its commitment to adhering to legal obligations while pursuing strategic financial decisions such as equity buybacks.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).