New Delhi, April 2 -- India's markets regulator has reopened debate on a previously scrapped share buyback route, saying that changes in the tax regime may have quietly resolved the inequities that led to its withdrawal.

In a consultation paper released on Thursday, the Securities and Exchange Board of India (Sebi) proposed reintroducing open market share buybacks through stock exchanges, barely a year after phasing out the method over concerns of fairness and tax distortions.

Earlier, companies could execute buybacks through a tender offer or buy their shares through stock exchanges in the secondary market. Sebi had flagged concerns relating to taxation and equitable access to shareholders when companies bought shares in the open marke...