Bringing back open-market buybacks through stock exchanges is the right decision

SEBI has restored the open-market buyback route through stock exchanges, a move described as timely and constructive. Recent tax changes had already diminished the attractiveness of buybacks as a promoter-level tax planning tool, reducing earlier concerns that justified restrictions. The article argues that given the maturity of Indian capital markets, strong corporate governance, and existing safeguards under the Companies Act and SEBI regulations, further easing of limits on buyback quantum, net worth thresholds, and mandatory cooling-off periods should be considered to improve capital allocation efficiency.