SEBI Chairman Flags Governance Risks; Proposes Buyback Route via Exchanges

Tuhin Kanta Pandey, Chairman of Securities and Exchange Board of India, outlined key challenges facing businesses and regulators on April 6, 2026. Speaking at the CII Corporate Governance Summit, he highlighted global uncertainties and evolving technological risks.

The remarks come amid rising geopolitical tensions and regulatory developments in capital markets. Separately, SEBI has proposed changes to share buyback mechanisms to improve market efficiency.

Global Risks and Economic Uncertainty

Pandey noted that escalating tensions in West Asia are disrupting oil and gas supplies. These disruptions have the potential to impact global energy markets and broader economic stability.

He indicated that such developments could have cascading effects on businesses and financial systems. The observations reflect increasing external risks influencing corporate and regulatory environments.

Technology Challenges and AI Impact

Artificial intelligence was highlighted as a key factor testing the operational limits of organisations. Pandey stated that companies, regulators, and government bodies are adapting to rapid technological changes.

The adoption of AI is creating both efficiency gains and new risk considerations. This shift requires continuous upgrades in systems, oversight, and governance frameworks.

Corporate Governance and Board Effectiveness

Pandey described corporate governance as the “nervous system” of an organisation, emphasising its role in resilience. He noted that firms with weak governance may appear stable externally but respond slowly to challenges.

Progress has been made in reducing information asymmetry and strengthening governance standards. The role of independent directors remains critical in improving board-level decision-making.

SEBI Proposes Buybacks via Stock Exchanges

SEBI has proposed reintroducing share buybacks through stock exchanges, reversing a mechanism discontinued on April 1, 2025. The revised framework addresses earlier concerns related to equitable shareholder treatment and tax implications.

Under the proposal, buyback proceeds will be taxed as capital gains in the hands of shareholders from April 1, 2026. The regulator stated that the open market route supports price discovery, liquidity, and efficient capital allocation.

Read More: New SEBI Rule for Stock Market.

Conclusion

SEBI’s latest developments highlight a dual focus on governance strengthening and market reforms. The regulator continues to address evolving risks arising from global factors and technological advancements.

At the same time, policy changes such as the proposed buyback mechanism aim to improve market efficiency. The combined approach reflects ongoing efforts to enhance transparency and resilience in India’s capital markets.

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