SEBI has approved the return of open market buybacks and introduced new measures for mutual funds and investors to improve market efficiency and investor convenience.
Key Highlights:
- SEBI allows open market buybacks through stock exchanges from August 1.
- Companies can now undertake buybacks twice in a financial year.
- Buyback process must be completed within 66 working days.
- Merchant banker appointment no longer mandatory for buybacks.
- Mutual funds allowed intraday borrowing for settlement requirements.
- Share transfer rules for legal heirs have been simplified.
New Delhi, June 20: The Securities and Exchange Board of India (SEBI) has announced a series of regulatory changes aimed at making capital markets more efficient and investor-friendly. Among the key decisions, the market regulator has approved the return of open market share buybacks through stock exchanges from August 1, providing companies with greater flexibility in managing capital and shareholder returns.
Under the revised framework, listed companies will be allowed to conduct buybacks up to two times in a financial year. The regulator has also reduced compliance requirements by removing the mandatory appointment of merchant bankers for such transactions. Additionally, companies will be required to complete buyback programs within 66 working days and communicate buyback information to shareholders through digital channels such as email and SMS alongside traditional disclosures.
SEBI has also introduced relief measures for the mutual fund industry by allowing fund houses to access intraday borrowing facilities to manage temporary cash flow mismatches and settlement obligations. The move is expected to improve operational efficiency and reduce liquidity-related disruptions. Alternative Investment Funds (AIFs) are also expected to benefit from streamlined fundraising processes under the updated regulations.
For retail investors, SEBI has simplified the process of transferring securities to legal heirs after the death of a shareholder. Market experts believe the latest reforms will improve ease of doing business for listed companies, strengthen liquidity management for investment funds and enhance convenience and transparency for investors across the capital market ecosystem.
