Re-evaluating India's Share Buyback Rules to Boost Shareholder Value
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Unlock Shareholder Value: Re-evaluate India's Buyback Regulations Now
M
Moneycontrol•24-03-2026, 08:11
Unlock Shareholder Value: Re-evaluate India's Buyback Regulations Now
•India's share buyback regulations are under scrutiny, hindering companies from protecting shareholder value during market downturns.
•Regulatory concerns include minority shareholder protection and tax revenue, but arguments for tax evasion are debunked by current capital gains tax.
•New tax laws effective April 1, 2026, will complicate tender-offer buybacks, creating an unreasonable proposition for controlling shareholders.
•Open-market buybacks are crucial for market stabilization, especially with FII selling and eroding retail investor wealth.
•Government urged to empower listed companies for open-market buybacks, utilizing Rs 10 lakh crore cash reserves to stabilize markets and protect investors.