SEBI moves to revive open market buybacks to steady markets
SEBI (Securities and Exchange Board of India) is moving to revive open-market buybacks to help steady the stock markets during all this recent volatility.
By adding a reliable buyer, the move aims to slow down panic selling and keep things more stable.
Bhavesh Shah from Equirus Capital called it a very positive move, saying the timing of this is also immaculate, given the volatility in the market right now.
Uniform capital gains tax incentivizes buybacks
Buybacks will help absorb extra selling pressure, according to EY India's Pranav Sayta.
Thanks to a new uniform capital gains tax, companies, especially in IT and pharma, now have more reason to use their spare cash for buybacks, which can boost earnings per share and long-term value.
SEBI's plan is expected to include guardrails on timing, pricing, and volumes to keep things fair for everyone involved.