SEBI Board Meets Today: Open-Market Buybacks, Faster AIF Approvals and Mutual Fund Reforms on Agenda

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), is scheduled to hold its board meeting today, June 19, with several significant proposals on the agenda that could reshape market operations and improve efficiency for investors, listed companies, alternative investment funds (AIFs), and mutual funds.

The meeting, which will be chaired by SEBI Chairman Tuhin Kanta Pandey, is expected to consider reforms aimed at streamlining fundraising, enhancing liquidity management, and reviving shareholder-friendly corporate actions.

Open-Market Buybacks Likely to Return

One of the most closely watched proposals before the board is the reintroduction of open-market share buybacks through stock exchanges.

Under the proposed framework, companies would be required to complete open-market buybacks within 66 working days from the opening of the offer. This marks a significant reduction from the earlier structure, which allowed buybacks to remain open for up to six months.

SEBI has also proposed retaining the requirement that companies deploy at least 40% of the earmarked buyback amount during the first half of the offer period. The move is expected to improve execution efficiency and provide greater certainty to shareholders.

GARUDA Mechanism to Accelerate AIF Fundraising

The board is also expected to review the proposed GARUDA framework—Green-Channel: AIF Rollout Upon Document Acknowledgement.

The mechanism seeks to speed up the launch of AIF schemes by allowing eligible funds to begin fundraising within 10 working days of filing their placement memorandums. Currently, fund managers typically wait around 30 days for regulatory processing.

The proposal is aimed at reducing administrative delays and making it easier for AIFs to access capital more quickly.

Mutual Funds May Get Greater Flexibility

Another key proposal involves expanding the scope of intraday borrowings available to mutual fund schemes.

At present, such borrowings are primarily used to meet redemption-related obligations. The new proposal would permit asset management companies (AMCs) to use intraday borrowing facilities for trade settlements, foreign exchange obligations, derivative margin payments, and repayment of existing borrowings.

The change is expected to help fund managers manage temporary cash flow mismatches more effectively.

Conclusion

Today’s SEBI board meeting could pave the way for several important regulatory reforms aimed at improving market efficiency and operational flexibility. If approved, the measures could benefit listed companies, investment funds, and mutual fund investors while strengthening the overall functioning of India’s capital markets.

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