The Securities and Exchange Board of India (Sebi) has proposed to reintroduce open market share buybacks, a move that would reverse a previous decision to phase out this method due to tax concerns. The proposal comes in light of changes in the tax framework, which will now treat buyback proceeds as capital gains starting April 2026. This change aims to eliminate the inequity that arose when participating shareholders benefited from tax-free exits while others did not. Sebi noted that the earlier decision was influenced by concerns over unequal shareholder participation and tax arbitrage. Industry bodies, including the Federation of Indian Chambers of Commerce and Industry (Ficci) and the Association of Investment Bankers of India (Aibi), have supported the reintroduction, highlighting that open market buybacks are efficient and prevalent globally. The existing regulations governing buybacks, such as limits on daily purchases and disclosure requirements, will continue to apply. The public has until April 23, 2026, to submit comments on this proposal before Sebi makes a final decision.