Share buyback is back in the market! Big decision of SEBI, rules of mutual funds and AIF will also change from August 1

digital desk- Market regulator Securities and Exchange Board of India (SEBI) has taken several major and historic decisions for investors and listed companies in its board meeting held on Friday. SEBI has approved to restart the process of share buyback through the stock exchange. After this decision, companies will be able to buy back their shares in the open market from August 1 and a time limit of 66 working days has been fixed for this. With this step, companies will be able to buyback through the regular trading system without any special buyback window, which will reduce paperwork and bring flexibility in the process. It is noteworthy that SEBI had gradually discontinued this system in the year 2025 due to concerns of unequal treatment of shareholders and tax related irregularities, but now it is being introduced by making it more transparent. When a company buys back its own shares from the market, it is called buyback. After this, the total number of shares of the company in the market reduces, which improves the earnings per share (EPS) and increases the confidence of investors. Apart from this main decision, the regulator has also relaxed several rules related to mutual funds, securities transfer and Alternative Investment Funds (AIFs) based on the recommendations of the high-level committee formed to review its governance system. Also, a new code of conduct for SEBI members has also been approved to prevent conflict of interest.

Mutual funds get big relief for intraday lending

After the changes made in the Mutual Fund Rules, 2026, mutual funds are now allowed to borrow intra-day to manage liquidity. SEBI Chairman Tuhin Kant Pandey said that the main objective of this step is to help fund managers handle daily liquidity mismatches in a better way. This will easily resolve timing mismatches related to pay-in and pay-out settlements, foreign exchange liabilities and mark-to-market payments on derivative positions, provided these are mandatorily repaid before the end of the borrowing day.

Securities transfer made very easy for nominees

The SEBI Board has made the process of claiming financial assets of an investor much faster and simpler for his nominee or legal heirs after the death of an investor. For this, a new category called ‘Quick Transmission Processing’ (QTP) has been introduced for low value claims. This QTP facility will be applicable on claims up to Rs 10,000 for physical securities and Rs 30,000 for demat securities. Additionally, the limit for direct transmission through simplified documentation has been doubled to Rs 10 lakh for physical holdings and Rs 30 lakh for demat holdings.

AIF sector will get a big boost from ‘GARUDA’ mechanism

SEBI has approved a new green-channel mechanism named ‘GARUDA’ to accelerate capital inflow into the Alternative Investment Funds (AIF) sector. Under this new framework, eligible AIF schemes will now be able to start raising funds within just 10 working days of filing the placement memorandum, compared to the earlier wait of 30 days. Additionally, the requirement to file placement memorandum through a merchant banker for schemes with only accredited investors and angel funds has also been completely removed. These schemes can now be launched immediately as soon as the documents are submitted. The growth of this sector in the country can be gauged from the fact that by March 31, 2026, the total number of AIFs registered in the country had reached 1,849, while their total commitment was touching the figure of Rs 15.74 lakh crore.