SEBI Reforms: Open Market Buybacks Return and New Rules for MFs and AIFs

The Securities and Exchange Board of India (SEBI) has announced a sweeping set of regulatory reforms designed to enhance market efficiency, reduce compliance hurdles, and strengthen investor protection. These decisions, finalized during the recent board meeting, impact everything from corporate buyback strategies to the operational agility of mutual funds and alternative investment funds.

The Return of Open Market Buybacks

In a significant move for corporate treasury management, SEBI has approved the reintroduction of exchange-based open market buybacks, effective August 1, 2026. Previously discontinued due to tax regime changes, companies will now have the flexibility to choose between the tender offer route and open market purchases through stock exchanges.

To ensure market integrity, SEBI has implemented strict safeguards. Companies must utilize at least 40% of the earmarked funds during the first half of the buyback period, and the entire process must be completed within 66 working days. Furthermore, promoters and their associates are prohibited from participating, and their holdings will remain frozen throughout the duration of the buyback. In a bid to lower compliance costs, the appointment of a merchant banker has now been made optional for this process.

Enhanced Liquidity for Mutual Funds and AIFs

The regulator is also addressing liquidity and speed in the investment ecosystem. SEBI has amended Mutual Fund Regulations to allow intraday borrowing. This facility is specifically designed to manage temporary liquidity mismatches, such as settlement timing differences, foreign exchange settlements, and mark-to-market obligations in derivatives. Crucially, this borrowing cannot be used for leverage and must be repaid by the end of the trading day.

For Alternative Investment Funds (AIFs), the introduction of the GARUDA (Green-Channel: AIF Rollout Upon Document Acknowledgement) mechanism is a game-changer. Under this framework, regular AIF schemes can be launched within just 10 working days. AI-only schemes and Angel Funds, which cater to accredited investors, can now launch immediately upon registration or filing of the placement memorandum, bypassing the need for merchant banker reviews.

Deepening Municipal Bonds and Simplifying Asset Transmission

Pour renforcer le marché de la dette municipale en Inde, la SEBI a assoupli plusieurs réglementations. Les municipalités peuvent désormais lever des fonds pour refinancer la dette de projets existants et utiliser des cadres de financement mutualisés. Pour attirer la participation des particuliers, les émetteurs sont autorisés à proposer des incitations telles que des augmentations de taux d'intérêt ou des remises sur le prix d'émission aux femmes, aux seniors et aux investisseurs particuliers. De plus, la valeur nominale des obligations municipales faisant l'objet d'un placement privé peut désormais être aussi basse que 10 000 ₹ sous certaines conditions.

Enfin, la SEBI s'attaque aux difficultés procédurales rencontrées par les héritiers légaux. L'obligation d'homologation des testaments a été supprimée lorsque les lois successorales le permettent. La documentation a été simplifiée grâce à un document combiné d'affidavit et de certificat de non-objection (NOC), et le régulateur acceptera désormais les certificats de décès avec codes QR pour une vérification plus rapide.

Points clés

  • Flexibilité des entreprises : Les entreprises retrouvent la possibilité d'effectuer des rachats d'actions via les bourses de valeurs à partir d'août 2026, à condition de respecter des mandats stricts en matière d'utilisation et de calendrier.
  • Efficacité opérationnelle : Le mécanisme GARUDA et les nouvelles règles d'emprunt intrajournalier pour les fonds communs de placement visent à accélérer le déploiement des capitaux et à gérer la liquidité plus efficacement.
  • Inclusion des particuliers : La baisse des valeurs nominales des obligations municipales et la simplification des processus de transmission de titres aux héritiers légaux devraient faciliter l'accès pour les investisseurs individuels.