L&T had announced a huge buyback - of Rs. 9,000 cr. - of the company's shares on a tender offer at Rs. 1450 per share. SEBI's taken a look at this and said that:L&T's CONSOLIDATED Debt to Equity Ratio would increase to beyond 2:1 after the buyback Because a buyback will reduce equity (both equity and reserves) and in this case, increase debt (because L&T would have to borrow a little to pay for the buyback) The regulations don't allow companies to buy . . .