SEBI is expected to consider a package of market reforms at its June 19 board meeting covering share buybacks, alternative investment funds (AIFs), bond-related rules and mutual fund liquidity. Sources cited by multiple outlets say the proposals aim to improve market efficiency while tightening safeguards to prevent misuse and to reduce compliance burdens for market participants.
On share buybacks, SEBI is reportedly considering reviving open market buybacks conducted through stock exchanges, a route that saw limited use after tax treatment made such activity less attractive. The discussion includes stricter guardrails, such as limits involving promoters and enhanced disclosure requirements.
On AIFs, the regulator is expected to review changes intended to speed up the launch of AIF schemes. The proposal would shorten approval timelines after regulatory acknowledgement, allowing fund managers to introduce products faster.
For bond markets, SEBI is expected to consider easing entry barriers for bond platform providers and expanding the range of products available, with the objective of deepening retail participation in fixed income markets.
For mutual funds, SEBI may also approve relaxed intraday borrowing norms for asset managers to improve short-term liquidity management during periods of redemption pressure.
