The shareholders approved heartily, but the company sheepishly admits it can never accomplish the two simultaneously: according to the recently announced buyback rules, no company that makes a capital issue can go for a buyback within two years.

India Cements proposes a rights issue to part-fund its Rs 445 crore takeover of Raasi Cement. It included the buyback resolution in its notice for the annual general meeting before the guidelines were announced, but did not withdraw it in time when the buyback rules were published.

The resolution has been duly passed, but the company is clearly focussed on the rights issue rather than any buyback proposal. "It was a slip. The resolution was already there, and we are going full-steam ahead with the rightsissue now, that is our basic concern," said vice chairman and managing director N Srinivasan, India Cements, speaking to The Financial Express.

The buyback rule, stipulating that companies should not be allowed to buy back their own shares within two years of an issue of fresh capital, was announced in order to prevent any unfair market practices by promoters.

Recently, Sebi has been beseiged with requests from promoters that the period of waiting between a capital issue and a bu8yback exercise be shortenede to maximum six months.