MOF raises share buyback limit from 10% to 20%

THE Ministry of Finance (MOF) is raising the share buyback limit under the Companies Act for Singapore-incorporated companies from 10 to 20 per cent with effect from today.

However, this will not affect such companies listed on the Singapore Exchange (SGX), which will continue to be subject to the 10 per cent limit in SGX's Listing Manual.

"This approach is consistent with the practices in other jurisdictions where listed companies are subject to a tighter share buyback limit imposed by exchanges through their listing rules, instead of the company law," said MOF.