Sebi reinstates open market buybacks, clears AIF and municipal bond reforms

SEBI approved a clutch of capital market reforms including reintroduction of open market share buybacks effective 1 August 2026, after tax changes in 2024 aligned buyback proceeds with capital gains tax and removed the prior arbitrage. The regulator also shortened AIF scheme launch timelines from 30 days to 10 working days, eased compliance for accredited investor and angel fund schemes, and permitted mutual funds broader use of intra-day bank borrowings for trade settlements, forex obligations, and mark-to-market needs. The number of registered AIFs has more than doubled to 1,849 as of March 2026 from five years earlier, underscoring the scale of the segment affected.