New Delhi, July 4 -- On 1 February, during her Budget 2026 speech, Finance Minister Nirmala Sitharaman announced changes to the taxation of share buy-back proceeds. In April and May 2026, we saw some companies announce share buy-backs through the tender route. Now, in June 2026, the Securities and Exchange Board of India (Sebi) has approved the reintroduction of share buy-backs through the open market route. In this article, we will examine how the buy-back through the open market route works and the regulations governing it.

On 19 June 2026, the Sebi board met and took some key decisions. One of the decisions was to approve amendments to the SEBI (Buy-back of Securities) Regulations, 2018, to re-introduce open market share buy-back thro...