Sebi to reintroduce open market share buybacks via exchanges; eases intra-day borrowing rules for MFs

The board of markets regulator Sebi on Friday (June 19, 2026) approved a wide range of proposals, including the reintroduction of open market share buybacks through stock exchanges, relaxation of intraday borrowing norms for mutual funds and simplification of securities transfer procedure following an investor’s death.

Also, the board decided to establish a green-channel mechanism — GARUDA — to speed up the launch of schemes by alternative investment funds (AIFs). This mechanism allows them to begin fundraising within 10 working days of filing their placement memorandums, compared with the current waiting period of 30 days.

Further, the Sebi board approved measures to revive agricultural commodity derivatives trading. At its board meeting, the regulator has decided to reintroduce open-market share buybacks through stock exchanges with a faster execution timeline.

Reintroducing this buyback method would provide companies with an additional mechanism for undertaking buybacks while ensuring equitable opportunity and tax treatment for public shareholders.