SEBI chairman Tuhin Kanta Pandey announced that the board has approved the reintroduction of open-market buybacks through stock exchanges, with the new mechanism set to take effect from August 1.
In a broad-based reform push aimed at improving market efficiency and easing compliance requirements, the Securities and Exchange Board of India (SEBI) approved a slew of measures at its board meeting on June 19 that could have significant implications for investors, companies, mutual funds and alternative investment funds.
From simplifying the transfer of securities to legal heirs and reintroducing open-market share buybacks to easing borrowing norms for mutual funds and speeding up AIF launches, the regulator's latest decisions underline its focus on balancing ease of doing business with investor protection.
1. Simpler transmission of securities
SEBI approved comprehensive reforms to facilitate faster transmission of securities to legal heirs and claimants of deceased investors. The regulator also introduced a new Quick Transmission Processing (QTP) category for small-value claims. Claims up to ₹10,000 for physical holdings and ₹30,000 for demat holdings can now be processed with minimal documentation.
The limit for simplified documentation has also been doubled—from ₹5 lakh to ₹10 lakh for physical holdings and from ₹15 lakh to ₹30 lakh for demat holdings. The regulator has also removed the requirement of PAN and mandatory probate of wills.
MUST READ: No PAN, No probate: How SEBI has simplified share transmission for families
2. Open-market buybacks return
SEBI chairman Tuhin Kanta Pandey announced that the board has approved the reintroduction of open-market buybacks through stock exchanges, with the new mechanism set to take effect from August 1.
Currently, companies can buy back shares through tender offers or other structured routes. The stock exchange route had earlier been phased out over concerns relating to inefficiencies and unequal shareholder participation.
The open-market route allows companies to repurchase shares directly from the secondary market over a period of time, providing greater flexibility in execution. Buybacks are often used to return surplus cash to shareholders, improve earnings per share and signal confidence in future prospects.
Under the revised framework, open-market buybacks will have to be completed within 60 days.
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3. Merchant bankers made optional
To lower compliance costs and improve ease of doing business, SEBI has made the appointment of merchant bankers discretionary for buybacks. Their responsibilities can now be distributed among companies, auditors and stock exchanges.
4. Mutual funds get borrowing flexibility
SEBI has allowed mutual funds to avail intraday borrowings to manage temporary liquidity mismatches arising from settlements, forex transactions and derivative obligations. These borrowings cannot be used for leverage and must be repaid by the end of the day.
5. Faster AIF launches
The regulator approved the GARUDA mechanism, reducing the launch timeline for regular AIF schemes to 10 working days. Angel Funds and Accredited Investor-only schemes can now be launched immediately after registration or filing.
6. Boost for Social Stock Exchange
SEBI approved the transfer of the Social Stock Exchange's Capacity Building Fund from NABARD to the newly incorporated Social Stock Exchange-Capacity Building Foundation.
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7. Push for securitisation market
The regulator approved amendments to align securitised debt instrument regulations with RBI norms to promote the development of the listed securitisation market.
8. Municipal bonds get retail push
SEBI approved several measures to encourage retail participation in municipal bonds, including incentives such as additional interest or discounts for categories such as senior citizens, women and retail investors.
9. SME fundraising framework under review
The regulator has selected the SME capital-raising framework for an evidence-based review in FY27 and also approved a new Code of Conduct for SEBI members.
Taken together, the decisions mark one of SEBI's most significant ease-of-doing-business initiatives in recent years, with a clear emphasis on reducing friction for market participants while enhancing safeguards for investors.
Published on: Jun 20, 2026 9:35 AM IST
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