has re-introduced open market share buybacks through stock exchanges and permitted to use s. Additionally, the regulator has switched to a monthly custodian fee regime from October 1, 2026.
August 1, 2026
Open Market Buybacks Effective Date
The Securities and Exchange Board of India (SEBI) has announced significant amendments to capital market regulations, reported over the past few days, aimed at enhancing operational efficiency and investor protection. Key changes include the re-introduction of 'open market' share buybacks through stock exchanges, effective August 1, 2026, providing companies with an alternative to tender offers. Additionally, SEBI has allowed mutual funds to utilize 'intraday borrowings' to manage settlement timing differences, adding flexibility. Separately, custodians will now transition from an annual fee payment to a monthly system from October 1, 2026, set at ₹85,000 per month or 0.0000416% of assets under custody, whichever is higher.
💭 If you're wondering…
An open market buyback is when a company repurchases its own shares directly from the stock exchange, buying shares from the open market at prevailing prices over a period, rather than through a fixed-price offer to all shareholders.
Did this story help?
Official sources
- SEBI Approves Open Market Buy-backs, Utilization Of Intraday Borrowings By Mutual Funds And Amendments To SDI Regulations - Mondaq ↗
- SEBI Replaces Annual Custodian Fee Regime With Monthly Payments, Effective October 1 2026 - LiveLawBiz ↗
- SEBI Tightens Buyback Framework, Introduces 15% Limit On Stock Exchange Route From 1 August - LiveLawBiz ↗
Knowledge Chain — tap a concept