The Securities and Exchange Board of India (SEBI) has proposed reintroducing share buybacks through stock exchanges, reversing a ban that was implemented due to concerns about fairness and tax distortions. The previous tax regime had created inequities among shareholders, as companies paid the buyback tax while shareholders did not. However, with the amendments to the Income Tax Act, public shareholders will now be taxed on actual capital gains when they tender their shares in a buyback, aligning this process with standard market sales. This change is expected to eliminate the differential tax advantages that previously existed. The buyback process will utilize an order-driven mechanism, ensuring equal opportunities for all public shareholders under uniform conditions. SEBI has also retained existing safeguards, including a separate buyback window, limits on price and volume, and enhanced disclosure requirements, while inviting public comments on the proposed framework by April 23.