SEBI likely to approve major reforms in bond markets, MFs and AIFs on June 19

SEBI is expected to approve a series of reforms at its June 19 board meeting, including the revival of exchange-based share buybacks, faster AIF approvals, easier rules for bond platforms and relaxed liquidity norms for mutual funds to improve market efficiency.

New Delhi: India’s markets regulator Securities and Exchange Board of India (SEBI) is expected to clear a package of reforms covering share buybacks, alternative investment funds, bond distribution and mutual fund liquidity at its board meeting on June 19.

The measures aim to boost market efficiency, ease compliance burdens and widen investor participation while tightening safeguards to prevent misuse, the report from NDTV Profit said, citing sources speaking on condition of anonymity.

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A key proposal under consideration is the revival of open market share buybacks executed through stock exchanges — a route that was left unused after unfavourable tax treatment made it unattractive.

SEBI reportedly wants to reintroduce of exchange‑based buybacks with stricter guardrails, including restrictions on promoter participation and stricter disclosure requirements.

“The board is also expected to take up changes aimed at accelerating the rollout of alternative investment fund (AIF) schemes. The proposed framework would shorten approval timelines significantly, allowing fund managers to launch products faster after regulatory acknowledgment,” the report said.

SEBI’s move is part of a broader push to improve ease of doing business in private market vehicles and boost capital formation through AIFs.

The board meeting is also expected to rule in favour lowering entry barriers for bond platform providers and expand product offerings, to deepen retail participation in fixed income markets.

The market regulator aims to expand access to debt instruments beyond institutional investors by streamlining rules for bond platform providers.

The board may also approve relaxed intraday borrowing norms for asset managers in the mutual fund industry to give them more flexibility in managing short-term liquidity needs.

During periods of heightened redemption pressure such relaxation will reduce forced selling and improve overall market stability, the report said.