The Securities and Exchange Board of India (SEBI) has announced a fresh set of reforms aimed at making India’s financial markets more efficient, flexible and investor-friendly. The decisions, approved during the regulator’s latest board meeting, are expected to benefit investors, mutual funds, listed companies and alternative investment funds alike.
Among the key announcements is the revival of open-market share buybacks through stock exchanges. The mechanism, which allows companies to repurchase shares directly from the market, will return from August 2026 after being largely phased out in recent years. The move is expected to provide companies with a more flexible way to return surplus cash to shareholders while improving market participation.
SEBI has also allowed mutual funds to access intraday borrowing facilities to address temporary cash flow mismatches. The regulator said the borrowing facility can be used for short-term liquidity needs and will help fund houses manage redemption pressures more effectively. Industry participants believe the decision will strengthen operational efficiency without increasing systemic risk.
The board also approved measures to simplify fundraising for Alternative Investment Funds (AIFs). Faster approvals and streamlined processes are expected to help fund managers launch new investment schemes more quickly, supporting capital flow into startups, emerging businesses and other growth sectors.
In addition, SEBI introduced changes aimed at strengthening India’s broader financial ecosystem. The regulator approved reforms related to municipal bonds, securitisation and fundraising norms for smaller listed companies. These steps are designed to deepen capital markets and improve access to funding across different segments of the economy.
The latest decisions reflect SEBI’s continued focus on balancing market development with investor protection. By reducing procedural hurdles and improving liquidity management, the regulator hopes to make India’s capital markets more competitive and attractive for both domestic and global investors.
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