Rule 10B-18 is a Securities and Exchange Commission (SEC) rule that is designed to reduce the liability of companies (and their affiliated buyers) when a company repurchases a company’s shares.
Rule 10B-18 is considered a safe harbor provision; the company is not required to follow the terms of the rule, but to reduce their liability, companies may adhere to its instructions regarding the method, timing, price and amount of the redemption.
In addition to complying with the conditions set out in the rule, the company must also report—quarterly and annually—more detailed share buyback information in additional SEC filings, including Form 10-Q, Form 10-K, and Form 20-F. to be in line.