The Securities and Exchange Board of India (Sebi) is contemplating the reintroduction of open market share buybacks through the stock exchange mechanism, which was previously halted due to concerns regarding transparency and price discovery. In a recent consultation paper, Sebi has invited public comments on this proposal, which would allow listed companies to repurchase shares directly from the secondary market. Currently, companies can only execute buybacks through tender offers or odd-lot buybacks. The open market approach offers greater flexibility in timing and execution but has faced criticism for potentially disadvantaging minority shareholders and influencing market prices. If reintroduced, the open market buyback method could significantly change how companies manage capital returns, particularly in volatile market conditions, allowing for more opportunistic repurchases when valuations are favorable. Sebi has indicated that any new regulations would include stricter safeguards to protect investors, especially minority shareholders.