SEBI brings back stock market route for company share buybacks from August 2026

India’s capital markets regulator SEBI has approved the reintroduction of the open-market mechanism for share buybacks through stock exchanges, marking a reversal of its earlier stance on the route, officials said on Friday, June 19. Bir Bahadur Singh Sachar, Partner at JSA Advocates & Solicitors said, “Permitting open market buybacks represents a significant benefit for companies, as repurchases are executed at prevailing market prices rather than at a predetermined fixed price.” He added that this mechanism can be especially beneficial for companies whose current stock price does not fully reflect the underlying value of their business. Pulkit Sukhramani, Partner at JSA Advocates & Solicitors said, “Companies seeking to consolidate ownership and enhance stock value may find the open market buyback route particularly advantageous.” He further added that buybacks conducted through stock exchanges reduce administrative burdens and provide greater flexibility regarding both timing and pricing. Read more