SEBI Unveils Major Market Reforms, Brings Back Open Market Buybacks

In a major push to improve market efficiency and investor convenience, the Securities and Exchange Board of India (SEBI) on Friday approved a series of key reforms covering share buybacks , mutual fund operations , alternative investment funds (AIFs), and investor-related procedures.

A key decision is the return of open market share buybacks through stock exchanges , allowing listed companies to once again repurchase their shares directly from the market. SEBI said the move will give companies greater flexibility in returning surplus cash to shareholders while ensuring fair participation and uniform treatment for investors. The process is also expected to be faster and more efficient.

The regulator also eased intraday borrowing rules for mutual funds , giving fund houses more flexibility to manage short-term liquidity needs without affecting investor interests.

In a move aimed at reducing delays, SEBI simplified the process for transferring securities after the death of an investor , making it easier for nominees and legal heirs to claim financial assets.

To support faster fundraising in the private investment space, SEBI introduced a new green-channel mechanism called GARUDA . Under this system, eligible AIFs can begin fundraising within 10 working days of filing documents, compared to the earlier waiting period of around 30 days .

SEBI also approved steps to revive agricultural commodity derivatives trading , aiming to improve participation, strengthen price discovery, and enhance risk management in farm-related markets.

Overall, the reforms are aimed at making India’s capital markets more efficient, transparent, and investor friendly , while reducing regulatory delays and improving ease of doing business.