Open Market Buybacks Return: Cash-Rich Stocks to Watch

Open Market Buybacks Are Back — Here's What Changes on August 1 SEBI has approved amendments to the Buy-back of Securities Regulations, 2018, bringing open market buybacks through stock exchanges back into play from August 1, 2026. This route was banned in 2024 after concerns about price manipulation and low utilization rates. The reversal isn't a casual tweak — it adds a third capital return channel alongside tender offers and book-building, and it comes with hard deadlines: companies must wrap up buybacks within 66 working days, deploying at least 40% of the earmarked amount in the first half of that window. Think of it this way: a tender offer buyback is like a company sending every shareholder a formal letter with a fixed price and a deadline to respond. An open market buyback is more like the company quietly buying its own shares on the stock exchange, day by day, at prevailing prices. The latter is more flexible for companies — and historically, more disruptive for short-term price action because the market doesn't always know exactly when or how aggressively a company is buying. The 40% front-loading rule is the detail that matters most. It prevents companies from announcing a buyback for optics and then sitting on their hands. If you earmark ₹1,000 crore, at least ₹400 crore must be deployed within roughly the first 33 working days. That's real buying pressure, and traders will price that in fast. Which Sectors and Stocks Face the Most Scrutiny The immediate candidates are cash-heavy companies in IT, FMCG, and private banking — sectors where free cash flow generation is high and capital allocation discipline is under constant analyst pressure. [TCS](/stock/TCS) (NSE: TCS) is the obvious name. The company held over ₹59,000 crore in cash and investments as of its March 2025 balance sheet. It's executed multiple buybacks in the past, most recently a ₹17,000 crore tender offer in 2023. An open market route gives TCS the flexibility to buy opportunistically ...