SEBI proposes reintroduction of open market buybacks
pre-market1 source ↓written by the desknot a recommendation
The Securities and Exchange Board of India (SEBI) has proposed to reintroduce open market share buybacks through stock exchanges following recent tax reforms. This change allows companies to repurchase shares directly from the secondary market, reversing a ban imposed in April 2025 due to tax concerns. This move could enhance liquidity and attract more investor participation in buybacks.
• Consultation paper released on 2 April 2026
• Shift in tax burden makes buybacks more appealing
• Aligns with international practices
Traders may see increased activity in stocks involved in buybacks as companies leverage this method to optimize capital structure.
Not investment advice. For informational purposes only.