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

Untuk memperkukuh pasaran hutang perbandaran India, SEBI telah melonggarkan beberapa peraturan. Pihak berkuasa perbandaran kini boleh mengumpul dana untuk membiayai semula hutang projek sedia ada dan menggunakan rangka kerja pembiayaan berkelompok. Bagi menarik penyertaan runcit, penerbit dibenarkan menawarkan insentif seperti peningkatan kadar faedah atau diskaun harga terbitan kepada wanita, warga emas, dan pelabur runcit. Selain itu, nilai muka bagi bon perbandaran yang ditempatkan secara peribadi kini boleh serendah ₹10,000 di bawah syarat-syarat tertentu.

Akhir sekali, SEBI sedang menangani isu-isu prosedur bagi waris sah. Keperluan mandatori untuk probat wasiat telah dihapuskan di mana undang-undang pewarisan membenarkannya. Dokumentasi telah dipermudahkan melalui afidavit-bersama-NOC, dan pengawal selia kini akan menerima sijil kematian dengan kod QR untuk pengesahan yang lebih pantas.

Ringkasan Utama

  • Fleksibiliti Korporat: Syarikat mendapat semula pilihan untuk menjalankan pembelian balik melalui bursa saham bermula Ogos 2026, dengan syarat mereka memenuhi mandat penggunaan dan garis masa yang ketat.
  • Kecekapan Operasi: Mekanisme GARUDA dan peraturan pinjaman intraday baharu untuk Dana Amanah bertujuan untuk mempercepatkan penggunaan modal dan mengurus kecairan dengan lebih berkesan.
  • Inklusi Runcit: Nilai muka yang lebih rendah bagi bon perbandaran dan proses yang dipermudahkan untuk pemindahan sekuriti kepada waris sah dijangka akan meningkatkan kemudahan akses bagi pelabur individu.