SEBI Regulatory Reforms 2026: Open Market Buybacks, AIF GARUDA, Mutual Fund Borrowing and Investor Protection
SEBI has approved a major set of capital market reforms at its Board meeting held on 19 June 2026. The official SEBI press-release listing records the item as PR No. 35/2026. (Securities and Exchange Board of India)
The biggest reform is the reintroduction of open market buybacks through stock exchanges from 1 August 2026. Under the revised framework, companies will be able to buy back shares through normal market trading. The buyback must be completed within 66 working days, and at least 40% of the earmarked amount must be utilised in the first half of the buyback period. (Reuters)
SEBI has also introduced safeguards. Promoter and promoter-associate holdings will remain frozen at the ISIN level during the buyback period, and buybacks cannot breach the minimum public shareholding requirement. Electronic communication to shareholders will also be required. (ICICI Direct)
The reforms also include:
- Intraday borrowing by mutual funds for temporary liquidity and settlement mismatches
- GARUDA framework for faster launch of AIF schemes
- Quick Transmission Processing for small-value securities transmission claims
- Stricter code of conduct for SEBI officials
For investors, the buyback tax impact is important. Shareholders should evaluate holding period, cost of acquisition and capital gains treatment before participating in buybacks. For tax reporting support, refer to ITR filing for capital gains and the capital gain tax calculator.
For companies planning buybacks, capital restructuring or board-level compliance, professional support through audit and assurance services, virtual CFO services and ROC filing services can help ensure legal and financial readiness.
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