Market regulator SEBI announces multiple changes covering corporate capital management, fundraising and market infrastructure. The regulator reinstates open market share buybacks executed through stock exchanges, with the option effective from August 1. SEBI’s framework requires buybacks to be completed within 66 days and mandates that 40% of the buyback funds are deployed in the early stage. SEBI also makes merchant banker appointment optional for certain buyback processes, aiming to reduce related costs.
On fund operations, SEBI relaxes mutual fund rules on intra-day borrowing to support liquidity management. For alternative investment funds (AIFs), SEBI introduces a faster fundraising route through a new “GARUDA” mechanism, allowing AIFs to raise capital more quickly.
Separately, SEBI simplifies the process of transferring securities after an investor’s death. The regulator also signals steps to increase activity in agricultural commodity derivatives trading.
