India Considers Open Market Buybacks to Support Equities Amid Selloff

India’s securities regulator is proposing to allow companies to conduct open market buybacks, a potential tool to stabilize equity markets amid a selloff driven by geopolitical tensions. The Securities and Exchange Board of India (SEBI) announced the initiative in a discussion paper released on April 2, 2026, seeking public feedback by April 23. The proposal permits companies to repurchase their shares directly on stock exchanges through a dedicated window, addressing investor concerns over market liquidity and stock valuations. The move comes as Indian equity indices, including the BSE Sensex (^BSESN) and Nifty 50 (^NSEI), trade near one-year lows, pressured by the ongoing conflict in the Middle East. The regulator aims to provide a mechanism for companies to support their stock prices while enhancing transparency in buyback processes. SEBI’s proposal aligns with global practices, where open market buybacks are used to signal corporate confidence and return value to shareholders. The initiative could impact financial markets by potentially boosting investor sentiment and improving liquidity. Companies in the financials and equities sectors may benefit from the flexibility to manage their capital structures more effectively. However, the final implementation will depend on the feedback received during the public consultation period, which closes on April 23. SEBI has not yet provided specific timelines for the policy’s enforcement.