Sebi plans buyback via SEs again, easier MF borrowing rules

Sebi is set to restore the open market buyback route through stock exchanges, a mechanism discontinued in 2025 over shareholder equality and tax distortion concerns, citing that revised taxation addressing capital gains on tendered shares resolves prior issues. The regulator will also consider broadening intraday borrowing facilities for mutual funds beyond redemption payouts to include trade settlements, FX transactions, derivative obligations, and debt repayment. The new buyback framework includes safeguards such as electronic intimation to shareholders, promoter transaction restrictions, and minimum public shareholding compliance, while reducing the role of merchant bankers to cut costs for small buybacks.