The Securities and Exchange Board of India (Sebi) has proposed the reintroduction of open market share buybacks, allowing companies to repurchase their shares through stock exchanges. This proposal comes after significant changes in the taxation framework, which will classify buyback proceeds as capital gains for shareholders starting April 1, 2026. Previously, the open market buyback mechanism was discontinued on April 1, 2025, due to concerns regarding equitable treatment among shareholders and tax-related disparities. Sebi noted that the earlier system led to unequal outcomes, where some shareholders benefited disproportionately from buybacks while others were excluded. The revised tax regime aims to eliminate these disparities, making selling in a normal market equivalent to participating in a buyback. Industry organizations, including the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Association of Investment Bankers of India (AIBI), have expressed support for this move, emphasizing its potential to improve investor confidence and market liquidity. Sebi has invited public comments on the proposal until April 23.