SEBI Sets Aug 1 Promoter Buyback Freeze

SEBI has operationalized a mechanism to freeze promoter and promoter group holdings at the ISIN level during share buybacks, effective from board or shareholder approval until the offer closes. Depositories have been directed to implement the necessary systems and guidelines by August 1, 2026 to enforce the freeze. The framework allows promoters to tender shares in buybacks conducted via the tender offer route and permits invocation of pre-existing encumbrances, such as pledged shares, with the freeze remaining in effect. Amendments to the SEBI (Buy-back of Securities) Regulations, issued on July 1, 2026, underpin the new regime. Listed companies will need to follow prescribed procedures for initiating freezes and handling ISIN-level restrictions across demat accounts. The aim is to enhance transparency and ensure promoter holdings are managed consistently during the buyback window.