Tax, securities norm changes reduce buyback appeal.

• Taxation and regulatory changes have led to a decrease in interest in share buybacks among Indian listed firms.

• As of June 26, 2025, only four share buyback offers were made, totaling ₹186 crore.

• This decrease is due to the taxation rule change from October 1, 2024, which shifted the burden from companies to shareholders.

• The Centre announced that income from buyback of shares would be taxed on a par with income from dividends from October 2024.

• Experts suggest this may have made buybacks less attractive for shareholders, reducing demand even during a bear market.

• SEBI’s regulatory changes, which have eliminated the option for companies to buyback their shares through the open market, may have contributed to this trend.