Sebi Board Approves Open-Market Share Buybacks and SDI Norms Update
The Securities and Exchange Board of India (Sebi) has reintroduced open-market buybacks via stock exchanges, following adjustments to the taxation framework. The move complements the tender-offer route and aligns the process with Companies Act regulations. Buybacks must be completed within 66 working days, with at least 40% of funds used in the first half, and safeguards such as promoter share freezes are in place.
In addition, Sebi amended the Securitised Debt Instruments (SDI) and Security Receipts regulations to align with the Reserve Bank of India’s securitisation framework. The board also eased intraday borrowing rules for mutual funds and expedited approvals for Alternative Investment Funds, streamlining operations and promoting efficiency. These measures aim to strengthen investor protection while enhancing market transparency and liquidity.
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