SEBI Restores Open-Market Buybacks From Aug. 1, Tightens Rules After Hindenburg Allegations
Updated
Updated · Reuters · Jun 19
SEBI Restores Open-Market Buybacks From Aug. 1, Tightens Rules After Hindenburg Allegations
3 articles · Updated · Reuters · Jun 19
Summary
August 1 marks SEBI’s return of open-market share buybacks through stock exchanges, reversing a 2025 phaseout and allowing purchases in the regular market without a dedicated window.
66 working days is the new cap on buyback duration, and companies must deploy at least 40% of the earmarked amount in the first half of the offer period.
SEBI also added safeguards: promoter shares will be locked in during buybacks, and companies cannot execute transactions that would breach the 25% minimum public float rule.
Senior officials can now voluntarily adopt a stricter code requiring them to liquidate or freeze equity holdings on joining and avoid trading while in office.
The governance changes follow SEBI’s review after Hindenburg Research alleged conflicts of interest involving former chief Madhabi Puri Buch and the Adani group; both denied the claims.
SEBI promises fairer buybacks after its 2025 ban. Can small investors finally profit equally, or is it an illusion?
With India lagging in AI, will share buybacks fuel innovation or just divert cash to inflate stock prices?
SEBI Brings Back Open-Market Buybacks in 2026: New Tax Regime, Investor Protections, and Economic Implications
Overview
In 2026, SEBI reversed its earlier ban and reintroduced open-market share buybacks, responding to strong advocacy from market experts and widespread public support. This policy shift was driven by the need to modernize market regulations and enhance corporate flexibility. SEBI established a clear operational framework, including a 60-day cap on buyback periods, but market participants are still awaiting further details on pricing and safeguards. The move follows previous concerns about fairness and arbitrage, which were heightened by earlier tax rules. Overall, this change aims to align India’s capital markets with global standards and boost investor confidence.