SEBI has announced new rules for open market share buybacks effective August 1, 2026, allowing companies to buy back shares through regular trading without a dedicated window. Key changes include a cap of 15% of paid-up capital and free reserves, completion within 66 working days, and discretionary appointment of merchant bankers. This reform aims to improve flexibility, reduce costs, and align with global practices.
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- ›Effective Date: August 1, 2026
- ›Buyback Limit: Less than 15% of paid-up capital and free reserves
- ›Target this Data: 15% of paid-up capital and free reserves (buyback limit)
- ›Target this Data: 66 working days (completion period)
- ›Target this Data: August 1, 2026 (effective date)
- ›Target this Nodal Body: SEBI (Securities and Exchange Board of India)
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