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

Untuk memperkukuh pembiayaan infrastruktur India, SEBI telah memudahkan kerangka kerja bon perbandaran. Pihak berkuasa perbandaran kini boleh mengumpul dana untuk membiayai semula hutang projek sedia ada dan terlibat dalam pembiayaan berkelompok. Untuk menarik pelabur runcit, penerbit boleh menawarkan insentif seperti peningkatan kadar faedah atau diskaun harga untuk warga emas dan wanita. Selain itu, nilai muka bagi bon perbandaran yang ditempatkan secara peribadi telah dikurangkan sehingga serendah ₹10,000 di bawah syarat-syarat tertentu.

Akhir sekali, SEBI telah menangani isu yang lama membelenggu keluarga: pemindahan sekuriti kepada waris sah. Dengan menghapuskan keperluan mandatori untuk probat wasiat (di mana undang-undang pewarisan membenarkan) dan menerima sijil kematian dengan kod QR, pengawal selia bertujuan untuk meminimumkan kesukaran prosedur dan mengurangkan beban dokumentasi kepada penuntut.

Ringkasan Utama

  • Fleksibiliti Korporat: Syarikat memperoleh semula keupayaan untuk menjalankan pembelian balik melalui bursa saham bermula Ogos 2026, menawarkan lebih banyak pilihan strategik untuk pemulangan modal.
  • Pengerahan Modal yang Lebih Pantas: Mekanisme GARUDA dan peruntukan pinjaman intraday akan mengurangkan kelewatan operasi secara signifikan bagi AIF dan Dana Amanah.
  • Inklusi Runcit: Halangan kemasukan yang lebih rendah bagi bon perbandaran dan proses pewarisan yang dipermudahkan menjadikan pasaran lebih mudah diakses oleh pelabur individu.