Historical Context and Evolution of Buyback Regulations
Previously, share buybacks were more regulated because of concerns over market manipulation. Before 1982 in the United States, stock repurchases were criticized as a form of market manipulation. Starting in 1982, the U.S. Securities and Exchange Commission (SEC) established Rule 10b-18, offering a safe harbor for companies to conduct buybacks without being charged with market manipulation so long as they adhere to certain conditions[1].
Likewise, in other jurisdictions such as the European Union and India norms concerning buybacks began to become more relaxed over time focusing following a principle that corporations be given enough leeway for capital structuring. Even so, these regulations existed to prevent abuse as well and more importantly protection for minority/small shareholders from unfair practices[2].
[1]Admin,History of Buybacks (3 oct, 7:00 PM), https://treasurydirect.gov/research-center/history-of-marketable-securities/buybacks/
[2]Ibid