Open Market Share Buybacks Return

One of the most notable decisions is SEBI’s approval to reintroduce open market share buybacks through stock exchanges. The mechanism had previously been phased out in favor of the tender offer route. The move is expected to provide listed companies with greater flexibility in returning excess cash to shareholders while allowing them to execute buybacks more efficiently based on prevailing market conditions.

Market participants believe the revival of exchange-based buybacks could improve liquidity and provide additional support to stock prices during periods of market volatility.

Relief for Mutual Funds

SEBI has also relaxed intraday borrowing norms for mutual funds. The change is aimed at helping fund houses manage temporary liquidity mismatches more effectively without affecting investor interests. The revised framework is expected to strengthen operational efficiency and improve cash management practices across the mutual fund industry.

Industry experts view the decision as a practical step that will enable fund managers to address short-term liquidity requirements while maintaining smooth redemption and settlement processes.

GARUDA Green Channel for AIFs

In another major reform, SEBI approved the introduction of a green-channel mechanism named GARUDA (Green Channel for Accelerated Registration and Fundraising of AIFs). Under the new framework, eligible Alternative Investment Funds will be able to commence fundraising activities within 10 working days of filing their placement memorandum.

Currently, AIFs typically wait around 30 days before launching fundraising efforts. The new mechanism is expected to significantly reduce procedural delays, improve ease of doing business, and facilitate faster capital deployment into startups, private equity, venture capital, and infrastructure projects.

Simplified Securities Transfer After Investor Death

SEBI has also approved measures to simplify the transfer of securities following the death of an investor. The streamlined process aims to reduce paperwork, minimize delays, and make it easier for legal heirs and nominees to claim financial assets.

The move is expected to enhance investor protection and address one of the long-standing operational challenges faced by families during succession and inheritance procedures.

Focus on Agricultural Commodity Markets

The regulator further approved reforms intended to revive agricultural commodity derivatives trading. The initiative is expected to improve participation in agri-commodity markets, strengthen price discovery mechanisms, and provide farmers, traders, and processors with better risk-management tools.

Strengthening India’s Capital Market Ecosystem

The latest set of approvals reflects SEBI’s broader objective of making India’s financial markets more efficient, transparent, and investor-friendly. By combining reforms across equities, mutual funds, alternative investments, inheritance procedures, and commodity markets, the regulator aims to create a stronger and more dynamic capital market ecosystem capable of supporting India’s long-term economic growth ambitions.

Market experts believe these measures will improve market participation, facilitate capital formation, and enhance confidence among domestic as well as global investors.