Open Market Buybacks Return Aug 1: 5 Stocks to Watch

Open Market Buybacks Are Back — Here's What Changes SEBI's June 19, 2026 board meeting confirmed the reintroduction of open market buybacks through stock exchanges, effective August 1, 2026. The mechanism had been suspended in 2024 after SEBI flagged concerns about price manipulation and inadequate fund utilisation. The revised framework addresses both: companies must complete buybacks within 66 working days and deploy at least 40% of earmarked funds in the first half of that window. That's not a soft guideline — it's a hard utilisation floor with compliance implications. This is a material shift. Tender offer buybacks, which remained available during the suspension, require a fixed price and a narrow acceptance window. Open market buybacks let companies accumulate shares opportunistically over weeks, creating sustained price support and more flexible capital deployment. For shareholders, the difference is significant. Tender offers reward only those who tender; open market programs lift prices for everyone holding through the window. The 40% front-loading rule is the key structural change from the pre-2024 framework. It forces genuine intent. Companies can't announce a buyback, sit on the cash, and let the announcement itself do the price work. At least half the committed capital has to move in the first 33 working days. IT Sector Has the Cash, the Motive, and the Timing The four large-cap IT names — [Infosys](/stock/INFY) (NSE: INFY), [TCS](/stock/TCS) (NSE: TCS), [HCL Technologies](/stock/HCLTECH) (NSE: HCLTECH), and [Wipro](/stock/WIPRO) (NSE: WIPRO) — are the most structurally positioned for open market programs. These companies generate free cash flow in the range of ₹15,000–₹45,000 crore annually, carry minimal debt, and have all executed buybacks in prior cycles. TCS is the most consequential name here. Its FY26 cash and equivalents stood above ₹60,000 crore on a consolidated basis, and promoter holding is already near the statutory ceiling, which cons...