SEBI has revised buy-back rules, now making the involvement of a merchant banker optional. The changes also introduce a 15% open-market cap along with new timelines effective August 1, 2026.
Revisions to Buy-Back Regulations by SEBI
On July 3, 2026, SEBI issued amendments to the buy-back rules, which will take effect from August 1, 2026. One of the principal changes is the optional involvement of a merchant banker in the buy-back process, potentially streamlining operations for companies.
The updated regulations also introduce a 15% cap on open-market purchases and new timelines for the completion of buy-back offers. These adjustments are expected to provide greater flexibility and encourage companies to engage more efficiently in buy-back activities.
Corporate legal advisors should be prepared to assist companies in understanding these new provisions, particularly in strategizing buy-back implementations while ensuring compliance with the revised regulatory framework.
Citations
- SEBI Notification (2026) SEBI Official Gazette
