SEBI Board Meeting: Major Regulatory Reforms to Boost Market Efficiency

The Securities and Exchange Board of India (SEBI) has announced a series of transformative regulatory reforms aimed at enhancing market liquidity, easing compliance, and strengthening investor protection. These decisions, taken during the recent board meeting, touch upon critical sectors including share buybacks, mutual funds, and municipal debt.

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 from August 1, 2026. This allows companies to choose between the traditional tender offer route and open market purchases.

To ensure market integrity, the regulator has introduced strict safeguards:

  • Fund Utilization: Companies must utilize at least 40% of the earmarked buyback funds during the first half of the buyback period.
  • Timeline: The entire buyback process must be concluded within 66 working days.
  • Restrictions: Promoters and their associates are prohibited from participating, and their holdings will remain frozen throughout the period.
  • Compliance Ease: To reduce costs, the appointment of a merchant banker will now be optional for companies.

Enhanced Liquidity for Mutual Funds and AIFs

SEBI is tackling operational bottlenecks by allowing Mutual Funds to engage in intraday borrowing. This facility is designed to manage temporary liquidity mismatches arising from settlement timing differences, foreign exchange settlements, and mark-to-market obligations in derivatives. Importantly, this cannot be used for leverage, and all borrowings must be repaid by the end of the trading day.

Furthermore, the regulator introduced the GARUDA (Green-Channel: AIF Rollout Upon Document Acknowledgement) mechanism to accelerate the launch of Alternative Investment Fund (AIF) schemes. Under this framework:

  • Regular AIF schemes can be launched within just 10 working days.
  • AI-only schemes and Angel Funds can launch immediately after registration or filing, bypassing the need for merchant banker reviews.

Deepening the Municipal Bond Market

Bagi memperkukuh landskap hutang perbandaran India, SEBI telah melonggarkan beberapa peraturan. Perbandaran kini dibenarkan untuk mengumpul dana bagi membiayai semula hutang projek sedia ada dan boleh menggunakan kerangka pembiayaan berkelompok yang melibatkan pelbagai perbandaran.

Bagi menggalakkan penyertaan runcit, penerbit kini boleh menawarkan insentif seperti diskaun harga terbitan atau faedah tambahan kepada kumpulan tertentu, termasuk warga emas dan wanita. Selain itu, nilai muka bagi bon perbandaran penempatan persendirian telah dikurangkan sehingga serendah ₹10,000 di bawah syarat-syarat tertentu.

Memudahkan Pemindahan Sekuriti kepada Waris Sah

Dalam langkah untuk mengurangkan kesukaran prosedur, SEBI telah memudahkan proses pemindahan sekuriti kepada waris sah selepas kematian. Perubahan utama termasuk:

  • Menghapuskan Halangan Probat: Keperluan mandatori untuk probat wasiat telah dikecualikan di mana undang-undang pewarisan membenarkannya.
  • Dokumentasi yang Dikurangkan: Pengenalan afidavit-bersama-Sijil Tiada Halangan (NOC) akan memudahkan urusan dokumentasi.
  • Pengesahan Digital: Sijil kematian yang mempunyai kod QR akan diterima untuk pengesahan yang lebih mudah, termasuk yang dikeluarkan di luar negara.

Ringkasan Utama

  • Fleksibiliti Korporat: Syarikat mendapat laluan dwi untuk pembelian balik (tender vs. pasaran terbuka) bermula Ogos 2026, dengan kos pematuhan yang lebih rendah.
  • Kepantasan Operasi: Mekanisme GARUDA dan pinjaman intraday untuk MF akan meningkatkan penggunaan modal dan pengurusan kecairan secara signifikan.
  • Inklusi Runcit: Nilai muka yang lebih rendah untuk bon perbandaran dan proses pewarisan yang dipermudahkan bertujuan untuk membawa lebih ramai pelabur individu ke dalam ekosistem formal.