SEBI board meet outcome: From buyback revival via exchanges to relaxed intraday borrowing for MFs; everything you need to know

The board of Securities and Exchange Board of India (SEBI) on Friday, June 19, approved a wide range of proposals, including the reintroduction of open market share buybacks through stock exchanges, relaxation of intraday borrowing norms for mutual funds and simplification of securities transfer procedure following an investor's death.

SEBI said such buybacks will be completed within 66 working days from the opening of buyback with at least 40% of funds earmarked will be utilised during the first half of the buyback period. Moreover, it permits companies to execute repurchases directly through the regular trading mechanism without a dedicated buyback window.

Reintroducing this buyback method would provide companies with an additional mechanism for undertaking buybacks while ensuring equitable opportunity and tax treatment for public shareholders.

"Considering the revised taxation framework applicable for buybacks, open market buyback through the stock exchange is being reintroduced with effect from August 1, 2026 to provide an additional route for the company to undertake buyback," SEBI Chairman Tuhin Kanta Pandey told reporters here after conclusion of the board meeting.

Borrowing norms for mutual funds

The move aims to address operational challenges asset management companies (AMCs) face due to timing mismatches between outflows and receivables within a scheme.

Currently, intraday borrowing serves as an important cash-flow management tool for mutual fund schemes, helping fund managers efficiently meet payout obligations and settlement requirements.

The SEBI board approved the amendment to the Mutual Funds Regulations, 2026, to facilitate intraday borrowings by mutual funds to manage daily liquidity mismatches, chairman Tuhin Kanta Pandey said.

The amendment will allow mutual funds to avail intraday borrowing to bridge differences arising out of pay-in/payout settlement timings within asset classes, forex settlements, payments for mark-to-market of derivative positions, etc., subject to certain safeguards.

Further, the market regulator’s board approved measures aimed at reviving agricultural commodity derivatives trading.

GARUDA for launch of schemes by AIFs

The board approved a new green-channel mechanism—GARUDA—to speed up the launch of schemes by alternative investment funds (AIFs), allowing them to begin fundraising within 10 working days of filing their placement memorandums, compared with the current waiting period of 30 days.

GARUDA or Green-Channel: AIF Rollout Upon Document Acknowledgement, aims to streamline the processing of placement memorandums (PPMs) filed with markets regulator SEBI and further ease fundraising by AIFs.

In a statement issued after the board meeting, SEBI said its board has approved the GARUDA mechanism through an amendment in SEBI (Alternative Investment Funds) Regulations, 2012.

As a result, for Non-Accredited Investor Schemes (which excludes Large Value Funds (LVFs), AI-only schemes, and Angel Funds (Regular schemes), the timeline for AIFs to launch new schemes has been reduced to 10 working days compared with the longer period required earlier.

This move would further enable faster and efficient deployment of capital by AIFs amid the rapid growth of the AIF industry and the increasing volume of scheme filings.

According to SEBI data, the number of registered AIFs has risen to 1,849 as of March 31, 2026, from 732 five years ago, marking a 135% growth. Moreover, cumulative commitments raised by AIFs stood at ₹15.74 lakh crore, while net investments reached ₹6.45 lakh crore as of December 31, 2025.

An External Experts Advisory Committee (EEAC), constituted by SEBI in December 2025, had recommended themes for independent reviews of regulations for FY27. The board approved the SME capital-raising framework as the theme for review.

Securities transfer process simplified

The markets regulator on Friday's meet also approved measures to simplify the transmission of securities following an investor's death, making it easier and faster for nominees and legal heirs to claim financial assets.

The regulator, at its board meeting, introduced a new category of Quick Transmission Processing (QTP) for small-value claims and enhanced the thresholds for simplified documentation. The board also approved a new Code of Conduct for its members and amendments to the SEBI (Employees’ Service) Regulations, 2001 (ESR), to strengthen the framework governing conflict of interest and disclosures.

The move follows recommendations made by a High-Level Committee (HLC) constituted by SEBI to comprehensively review the existing rules on conflicts of interest, disclosures, and related matters concerning SEBI board members and employees.

SEBI said the final Code of Conduct and amendments to the ESR will be posted on its website after completing due process, including publication of the ESR amendments in the Official Gazette.

Regarding the new mechanism, SEBI said QTP will be available for claims of up to ₹10,000 for physical securities and ₹30,000 for dematerialised (demat) securities. Further, SEBI has doubled the limits for transmission through simplified documentation. The threshold has been increased from ₹5 lakh to ₹10 lakh for physical holdings per listed company and from ₹15 lakh to ₹30 lakh for demat holdings per beneficial owner.

Other announcements

The regulator has also approved several measures to reduce procedural requirements and streamline the transmission process.

As part of the changes, the requirement to submit a Permanent Account Number (PAN) has been removed, considering that PAN details are already available for opening demat accounts. In addition, the mandatory requirement of obtaining probate of a will has been dispensed with in line with recent amendments to succession laws.

SEBI has also allowed the submission of a combined affidavit-cum-no objection certificate (NOC) instead of separate affidavits and NOCs.

To facilitate easier verification, copies of death certificates carrying a QR code will now be accepted in addition to original or attested copies. For death certificates issued in foreign jurisdictions, the regulator has specified additional verification mechanisms through overseas branches of Indian banks or foreign banks having correspondent banking relationships with Indian banks.

These measures are expected to facilitate quicker transmission of securities while reducing costs and procedural hardships for claimants.