Below was generated by DeepSeek V3 with web search. Highly...

Below was generated by DeepSeek V3 with web search. Highly encourage to try it out. Anyone can set up a free account with full functionality enabled. DeepSeek Chat [https://chat.deepseek.com/] is arguably the strongest open source LLM out there at the moment and I prefer it over ChatGPT any day. Web search capability makes hallucination very unlikely and system provides links for anyone to counter check ground truth.
Extremely helpful for quick research and fact checking. Basically DeepSeek just killed Perplexity AI's business model. That's an 8bn valuation that is toast IMHO ...

Anyways, below is the result for the query: "What are the ASX rules on buybacks around timing of annual report release? Can a buyback with pre-set terms still take place? If not, what are the rules for the blackout period?" PS: Formatting is better on the website than what is shown below ...

The ASX rules on share buybacks and their timing around the release of annual reports are governed by a combination of regulatory requirements and corporate policies. Here’s a detailed breakdown of the key considerations:

1. ASX Rules on Buybacks and Timing of Annual Reports

• Blackout Periods: During blackout periods, which typically occur between the close of a company’s financial books and the release of its half-yearly or annual accounts, directors and senior staff are prohibited from trading in their company’s shares. This is to prevent conflicts of interest and insider trading3.

• Trading Windows: Outside of blackout periods, known as trading windows, trading is permitted. Companies must establish clear trading policies that define these periods and ensure compliance with ASX Listing Rule 12.93.

2. Buybacks with Pre-Set Terms During Blackout Periods

• General Rule: Buybacks with pre-set terms, such as equal access or on-market buybacks, are generally not permitted during blackout periods. This is because the company is in possession of material, non-public information that could influence the buyback process311.

• Exceptions: If a buyback is part of an employee share scheme or a minimum holding buy-back, it may proceed under specific conditions, provided it complies with the Corporations Act and ASX Listing Rules. However, these exceptions are rare and require careful legal and regulatory scrutiny11.

3. Rules for Blackout Periods

• Duration: The blackout period typically starts when the company closes its financial books and ends when the financial results are publicly released. For annual reports, this period can span several weeks3.

• Applicability: The blackout period applies to directors, senior executives, and other key personnel who have access to sensitive financial information. It also extends to any share buyback activities that could be influenced by this information3.

• Communication: Companies must clearly communicate their trading policies, including blackout periods, to all relevant personnel to ensure compliance and avoid penalties for insider trading3.

4. Practical Considerations

• Timing of Buybacks: Companies planning buybacks should schedule them outside of blackout periods to avoid regulatory issues. This ensures that the buyback process is transparent and free from conflicts of interest311.

• Regulatory Compliance: Companies must adhere to the Corporations Act and ASX Listing Rules, which require that buybacks be conducted fairly and with full disclosure to shareholders. This includes lodging necessary documents with ASIC and providing adequate notice to shareholders11.

5. Penalties for Non-Compliance

• Suspension of Trading: Failure to comply with ASX rules, including those related to blackout periods and buybacks, can result in the suspension of a company’s securities from trading. This is particularly relevant for periodic reports, where late lodgment can lead to automatic suspension14.

• Legal Consequences: Insider trading or improper conduct during blackout periods can attract severe penalties, including fines and imprisonment3.

Conclusion

In summary, ASX rules prohibit buybacks with pre-set terms during blackout periods to prevent insider trading and ensure market integrity. Companies must carefully plan buybacks outside these periods and adhere to strict regulatory requirements. For further details, refer to the ASX Listing Rules and ASIC guidelines on share buybacks31114.