corporate actions · intermediate
Open market buyback
An open market buyback is when a company purchases its shares on NSE/BSE over a period under SEBI Buyback Regulations.
Under SEBI Buyback Regulations, the company buys from the continuous market up to a disclosed maximum price and size.
Daily purchase updates are typically disclosed on the exchanges during the buyback window.
Unlike a tender offer, shareholders do not submit shares through a separate fixed-price tendering process.
Tax framing belongs under buyback tax because the regime has changed across Finance Acts.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.