SEBI Reforms: Open Market Buybacks, MF Intraday Borrowing and More

The Securities and Exchange Board of India (SEBI) has announced a sweeping set of regulatory reforms designed to enhance market efficiency, ease the compliance burden, and bolster investor protection. These decisions, taken during a recent board meeting, touch upon critical sectors including corporate buybacks, mutual funds, and municipal debt.

Reintroduction of Open Market Buybacks

In a major move for corporate actions, SEBI has approved the return of exchange-based buybacks, effective from 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 introduced several safeguards:

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

Enhanced Liquidity for Mutual Funds and AIFs

SEBI is also addressing operational bottlenecks for institutional players. Under the amended Mutual Fund Regulations, fund houses are now permitted to engage in 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.

Furthermore, the regulator introduced the GARUDA (Green-Channel: AIF Rollout Upon Document Acknowledgement) mechanism to accelerate the launch of Alternative Investment Fund (AIF) schemes. Regular AIF schemes can now be launched within 10 working days, while AI-only schemes and Angel Funds can launch immediately upon registration or filing, bypassing merchant banker reviews.

Deepening the Municipal Bond Market

Ili kuhimiza ufadhili wa miundombinu ya mijini, SEBI imerahisisha mfumo wa dhamana za manisipalia. Manisipalia sasa zinaweza kuchukua fedha ili kufadhili upya madeni ya miradi iliyopo na kutumia miundo ya ufadhili wa pamoja. Ili kuchochea ushiriki wa wawekezaji wadogo, watoaji wanaruhusiwa kutoa vivutio kama vile riba ya ziada au punguzo la bei ya utoaji kwa wananchi wazee, wanawake, na wawekezaji wadogo. Aidha, thamani ya uso kwa dhamana za manisipalia zinazowekwa kwa njia ya faragha imepunguzwa hadi kufikia ₹10,000 chini ya masharti maalum.

Kurahisisha Uhamishaji wa Dhamana kwa Warithi wa Kisheria

Ikizingatia changamoto za taratibu zinazowakabili familia, SEBI imerahisisha uhamishaji wa dhamana baada ya kifo cha mmiliki. Mamlaka hiyo imeondoa hitaji la lazima la uthibitisho wa wasia (probate) pale ambapo sheria za urithi zinaruhusu. Hatua mpya ni pamoja na kukubalika kwa kiapo-pamoja-na-Cheti cha Kutokukataa (NOC) na matumizi ya vyeti vya kifo vyenye msimbo wa QR kwa ajili ya uhakiki wa haraka, jambo ambalo linapunguza kwa kiasi kikubwa vikwazo vya nyaraka kwa warithi wa kisheria.

Mambo Muhimu ya Kuzingatia

• Unyumbufu wa Makampuni: Makampuni yanapata tena chaguo la kununua hisa zao kwenye soko la wazi kuanzia Agosti 2026, huku gharama za uzingatiaji zikiwa zimepunguzwa.
• Utekelezaji wa Mtaji wa Haraka: Utaratibu wa GARUDA utaruhusu mipango ya AIF kuingia sokoni kwa haraka zaidi, jambo litakaloboresha urahisi wa kufanya biashara.
• Ujumuishaji wa Wawekezaji Wadogo: Thamani ndogo za uso na vivutio maalum katika soko la dhamana za manisipalia vinakusudia kuwavuta wawekezaji binafsi wengi zaidi kwenye vyombo vya deni vya mijini.