SEBI Proposes Major Changes to Buy-Back Regulations 2018

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  • Last Updated on 12 May, 2026

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SEBI buy back regulations

Consultation Paper; Dated: 08.05.2026

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a review and rationalisation of the SEBI (Buy-Back of Securities) Regulations, 2018.

1. Key Proposals in the Consultation Paper

1.1 Reintroduction of Open Market Buybacks

  • SEBI proposes to reintroduce buybacks through the open market via stock exchanges
  • This method had earlier been discontinued and is now proposed to be revived with safeguards.

1.2 Removal of Mandatory Merchant Banker Requirement

Proposal to dispense with the mandatory appointment of a Merchant Banker for buyback transactions

1.3 Redistribution of Merchant Banker Functions

Activities presently performed by merchant bankers are proposed to be allocated among:

  • The company undertaking the buyback
  • Stock exchanges
  • Secretarial auditor

2. Objective of the Proposals

The review aims to:

  • Simplify buyback compliance framework
  • Promote ease of doing business
  • Reduce procedural and compliance costs
  • Improve operational efficiency in buyback execution

3. Stakeholder Consultation

  • SEBI has invited comments and suggestions from stakeholders
  • Last date for submission – 29 May 2026

4. Conclusion

The consultation paper reflects SEBI’s effort to create a more streamlined and efficient buyback framework by reintroducing market-based mechanisms and rationalising intermediary-related compliance requirements.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied