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

The Securities and Exchange Board of India (SEBI) has announced a sweeping suite of regulatory reforms designed to enhance market liquidity, reduce compliance burdens, and protect investor interests. From the reintroduction of exchange-based buybacks to streamlined processes for legal heirs, these decisions signal a major push toward market efficiency.

Return of Open Market Buybacks via Stock Exchanges

In a significant move for corporate actions, SEBI has approved the reintroduction of open market buybacks through stock exchanges, effective August 1, 2026. Previously discontinued due to tax regime changes, this reform allows companies to choose between the tender offer route and open market purchases.

To ensure market integrity, SEBI has implemented strict safeguards:

  • Mandatory Utilization: Companies must use at least 40% of earmarked funds during the first half of the buyback period.
  • Timeframe: The entire buyback process must be completed within 66 working days.
  • Restrictions: Promoters and their associates are barred from participating, and their holdings will be frozen throughout the period.
  • Cost Reduction: The appointment of a merchant banker is now optional, aimed at lowering compliance costs for issuers.

Enhanced Liquidity for Mutual Funds and Faster AIF Launches

The regulator is tackling operational bottlenecks by allowing Mutual Funds (MFs) to engage in intraday borrowing. This facility is intended solely 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.

Simultaneously, the launch of Alternative Investment Fund (AIF) schemes will see a massive speed boost through the new GARUDA (Green-Channel: AIF Rollout Upon Document Acknowledgement) mechanism. Under this framework, regular AIF schemes can be launched within just 10 working days. Angel Funds and AI-only schemes can now launch immediately upon registration or filing, bypassing the need for merchant banker reviews.

Boosting Municipal Bonds and Simplifying Inheritance

地方債市場を深化させるため、SEBIはいくつかの規制を緩和しました。自治体は、既存のプロジェクト債務の借り換えや、プールされた資金調達枠組みの活用に向けて資金を調達できるようになります。個人投資家の参加を促すため、発行体は高齢者、女性、および個人投資家に対して、利息ボーナスや価格割引などのインセンティブを提供できます。さらに、一定の条件下において、私募形式の地方債の額面金額が10,000ルピーまで引き下げられました。

最後に、SEBIは証券の承継の際に遺族が直面する手続き上の困難に対処しています。当局は、相続法が許容する場合、遺言書の検認（プロベート）の義務付けを撤廃し、書類作業を軽減するために、宣誓供述書兼無異議証明書（NOC）を導入しました。また、QRコード付きの死亡証明書の受理により、確認プロセスも迅速化されます。

主なポイント

  • 企業の柔軟性: 企業は自社株買いの選択肢を増やし、2026年には公開市場ルートが復活することで、より高い執行の柔軟性が確保されます。
  • 運用の効率性: GARUDAメカニズムと投資信託（MF）向けの新しい日中借入ルールにより、より迅速な資本投入とスムーズな流動性管理が可能になります。
  • 投資家のアクセシビリティ: 地方債の額面金額の引き下げと、法定相続人のための簡素化された承継プロセスにより、市場はより包括的で使いやすいものになります。