Open Market Buybacks Return: IT & FMCG Stocks to Watch

Open Market Buybacks Are Back. Here's What Changes. SEBI has formally approved amendments to the Buy-back of Securities Regulations, reinstating open market buybacks through stock exchanges from August 1, 2026. The mechanism was scrapped in 2024 amid concerns about price manipulation. Its return, with tighter guardrails, is a meaningful structural shift for cash-heavy Indian large-caps. Companies now have 66 working days to complete a buyback. Critically, they must deploy at least 40% of the earmarked amount in the first half of that window. That front-loading requirement is the clause that matters most for near-term price action. The 40% floor isn't cosmetic. Under the old regime, companies would often drag their feet, buying back minimal shares in early weeks and concentrating activity near the close, or not at all. The new rule forces genuine capital commitment upfront. For investors watching NSE: [TCS](/stock/TCS) or NSE: [HINDUNILVR](/stock/HINDUNILVR), this means any announced buyback should translate to visible price support within the first 33 working days. Not vague promises on a balance sheet. SEBI's safeguards include daily purchase limits, mandatory escrow accounts, and a prohibition on insider-period buybacks. These directly address the manipulation risk that killed the mechanism two years ago. The structure is cleaner now. That doesn't guarantee every company behaves well, but it removes the most obvious abuse vectors. Which Sectors and Stocks Are Positioned Best IT and FMCG aren't just obvious candidates. They're structurally predisposed to this tool. Large Indian IT firms carry net cash positions that dwarf their near-term capex needs. As of their most recent quarterly filings, NSE: TCS held net cash of approximately ₹57,000 crore, NSE: INFY around ₹31,000 crore, and NSE: HCLTECH roughly ₹14,000 crore. NSE: WIPRO has historically been the most aggressive buyer among the four, having conducted multiple buybacks since 2017 totaling over ₹45,000 c...