SEBI Reforms: Open Market Buybacks Return and New Rules for Mutual Funds

The Securities and Exchange Board of India (SEBI) has unveiled a sweeping suite of regulatory reforms designed to enhance market liquidity, simplify compliance, and protect investor interests. These strategic decisions, finalized during the latest board meeting, impact everything from how corporations return capital to how mutual funds manage daily liquidity.

Reintroduction of Open Market Buybacks

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

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.
  • Strict Timelines: The entire buyback process must be concluded within 66 working days.
  • Promoter Restrictions: Promoters and their associates are barred from participating, and their holdings will remain frozen throughout the duration of the buyback.
  • Reduced Costs: In a bid to ease the compliance burden, the appointment of a merchant banker has been made optional for these transactions.

Enhanced Liquidity for Mutual Funds and AIFs

The regulator is also focusing on operational efficiency for institutional players. SEBI has amended Mutual Fund Regulations to allow intraday borrowing. This facility is strictly intended to manage temporary liquidity mismatches, such as settlement timing differences, foreign exchange settlements, and mark-to-market obligations in derivatives. Crucially, this cannot be used for leverage, and all borrowings must be repaid by the end of the trading day.

For Alternative Investment Funds (AIFs), the new "GARUDA" (Green-Channel: AIF Rollout Upon Document Acknowledgement) mechanism will significantly accelerate scheme launches. Regular AIF schemes can now be launched within just 10 working days, while AI-only schemes and Angel Funds can launch immediately upon registration or filing, bypassing the need for merchant banker reviews.

Deepening Municipal Bonds and Simplifying Inheritance

인도의 인프라 금융을 강화하기 위해, SEBI는 지방채(municipal bond) 프레임워크를 완화했습니다. 이제 지방자치단체는 기존 프로젝트 부채를 재금융하거나 공동 금융(pooled financing)에 참여하기 위해 자금을 조달할 수 있습니다. 개인 투자자를 유치하기 위해 발행인은 고령층과 여성을 대상으로 금리 우대나 가격 할인과 같은 인센티브를 제공할 수 있습니다. 또한, 특정 조건하에 사모 지방채의 액면가가 최저 ₹10,000까지 낮아졌습니다.

마지막으로, SEBI는 가족들이 오랫동안 겪어온 고충인 유가증권의 법적 상속인 승계 문제를 해결했습니다. (상속법이 허용하는 범위 내에서) 유언 검인(probate of wills) 의무를 폐지하고 QR 코드가 포함된 사망 증명서를 수용함으로써, 규제 기관은 절차적 어려움을 최소화하고 청구인의 서류 부담을 줄이는 것을 목표로 하고 있습니다.

핵심 요약

  • 기업 유연성: 기업은 2026년 8월부터 증권 거래소를 통한 자사주 매입 능력을 회복하여, 자본 환원을 위한 더 전략적인 옵션을 제공할 수 있게 됩니다.
  • 신속한 자본 투입: GARUDA 메커니즘과 당일 차입 규정은 AIF 및 뮤추얼 펀드의 운영 지연을 크게 줄여줄 것입니다.
  • 개인 투자자 참여 확대: 지방채 진입 장벽 완화와 간소화된 상속 절차를 통해 개인 투자자들이 시장에 더 쉽게 접근할 수 있게 됩니다.