New Delhi, July 8 -- The Securities and Exchange Board of India (SEBI) has notified rules to bring back share buybacks through the open market route, meaning listed companies will be able to repurchase shares through stock exchanges instead of the tender offer mechanism. The new framework will come into effect from August 1, 2026.

The markets regulator had discontinued open-market buybacks last year, citing concerns over unequal treatment of shareholders and tax-related distortions, as the mechanism was viewed as favouring select investors.

Retail investors can participate in an open-market buyback by selling their shares on the stock exchange during the buyback period, just like they would in a regular market transaction.

Also, a buyb...