Companies can purchase back shares from public shareholders using one of two methods:

1. Buyback Tender Offer: The company makes an offer to buy back its shareholders (Offer price), and the shareholders can tender their shares at that price.

2. Open-market buyback: The corporation can choose to buy back its shares on the open market by actively buying from sellers on the exchange platform. In the buyback offer, the corporation indicates the buyback time. The corporation must ensure that there is no major price appreciation as a result of its buying activities, therefore these buybacks normally persist for months.

Because only a fraction of the shares you sold for a buyback offer would have matched with the company's buyback order, you might not get paid for all of them. The exchange where your trades are performed will send you an email with the specifics of your executed buyback order, including the number of shares.

The government has enacted a buyback tax, which requires the corporation buying back the shares (open-market or tender buyback offer) to pay all applicable taxes. This confirmation can be used to claim relevant tax breaks under the Income Tax Act of 1961.

Let's pretend you've sold 2000 shares of a corporation from your portfolio. It's probable that the business will only purchase back 800 shares, with the remaining 1200 being sold to a regular buyer. The exchange will send you an email verifying the transaction of the 800 shares that the corporation bought back.