SEBI Buyback Rules: SEBI made major changes in buyback rules, companies will get approval from August 1

New SEBI Buyback Rules: Securities and Exchange Board of India i.e. SEBI has taken a very important decision for the corporate world on Friday. SEBI has given its big and important approval to restart share buyback through the stock exchange. After this new and big decision, now all listed companies will be able to buy back their shares in the open market from August 1. For this, a new deadline of 66 working days has also been set by the market regulator.

With this big step of SEBI, companies will be able to buy shares through regular trading system without any special buyback window. This will make the entire process much easier than before and the heavy paperwork of companies will also be reduced. SEBI had gradually discontinued open market buyback in the year 2025, which has now been restarted. This could make buyback even more attractive as a capital allocation tool for listed companies.

Advantages of buyback process

When any company buys back its own shares from the market, this entire process is called share buyback. After this, the total number of shares of that company in the market reduces significantly, which leads to a huge improvement in the EPS. The company does this when it has excess cash or feels that its stock is being too undervalued. Buyback increases the confidence of common investors in the stock market and the share price also gets a lot of support.

Relaxation in mutual fund rules

After the major changes in Mutual Fund Rules 2026, now mutual funds will also get special permission to borrow intra-day. This will easily resolve timing mismatches related to foreign currency liabilities and payments on derivative positions. SEBI chief Tuhin Kant Pandey said that its objective is to help fund managers manage daily liquidity mismatch. It will also be ensured that any such intra-day borrowing is fully repaid before the end of the day.

Securities transfer made easy

The Board has also approved measures to greatly simplify the process of transfer of securities after the death of an investor. It will now be easier than ever for nominees and legal heirs to stake claim on any financial assets. The regulator has introduced a new category of quick transmission processing for low value claims of Rs 10,000 and Rs 30,000. Apart from this, with easy documentation, the limit for physical holdings has been reduced to Rs 10 lakh and for demat to Rs 30 lakh.

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AIF sector got a boost

The Board has also approved a new green-channel mechanism called Garuda which will greatly speed up the process of launching AIF schemes. Under this framework, eligible AIFs will be able to start raising their funds within 10 working days of filing the scheme memorandum. Earlier one had to wait for 30 days for this, but now the capital can be used quickly and efficiently. As of March 31, 2026, the number of registered AIFs in the country was 1,849 while the total commitment had reached Rs 15.74 lakh crore.