SEBI Proposes Revival of Open Market Share Buybacks Through Stock Exchanges

• SEBI proposes reintroducing open market share buybacks via stock exchanges, a significant shift in capital market regulation.
• The mechanism, previously discontinued due to tax concerns, is reconsidered after tax reforms aligned buyback taxation with regular market transactions.
• Industry bodies like FICCI and AIBI advocated for this, citing global preference, efficiency, and market stabilization benefits.
• Open market buybacks ensure transparency through an order-driven system, price-time matching, and equal opportunity for public shareholders.
• The proposal aims to provide companies with an additional buyback mechanism and is open for public comments until April 23, 2026.