The Securities and Exchange Board of India (Sebi) has reopened discussions on the possibility of reintroducing open market share buybacks, which were previously banned due to concerns over fairness and tax distortions. In a consultation paper released on Thursday, Sebi indicated that recent changes in the tax regime may have addressed the inequities that led to the initial withdrawal. Previously, companies could conduct buybacks either through tender offers or in the secondary market, but issues arose as some shareholders benefited from tax exemptions while others did not. The new tax framework, effective from 2024, now taxes buyback gains similarly to capital gains, thus leveling the playing field for all shareholders. Industry groups, including the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Association of Investment Bankers of India (AIBA), have expressed support for the reintroduction, citing its global prevalence and potential to stabilize stock prices by allowing companies to buy back shares gradually, rather than all at once.