UPSC Prelims Practice Questions — SEBI reintroduces open market stock buyback at board meet

Q1. As per the SEBI Board decision of June 2026 reintroducing open market buyback through stock exchanges (effective August 1, 2026), what is the maximum permissible completion timeline for such a buyback from the date of opening of the offer?

  • A. 22 working days
  • B. 44 working days
  • C. 66 working days
  • D. 90 working days

Q2. With reference to the SEBI Board meeting decisions of June 2026 on the reintroduction of open market buyback through stock exchanges, consider the following statements: 1. The open market buyback route through stock exchanges has been reintroduced with effect from August 1, 2026. 2. The appointment of a merchant banker has been made mandatory for the open market buyback route. 3. At least 40% of the funds earmarked for the buyback must be utilised in the first half of the buyback period. 4. Shares held by promoters and their associates are to be frozen during the buyback period. Which of the statements given above is/are correct?

  1. The open market buyback route through stock exchanges has been reintroduced with effect from August 1, 2026.
  2. The appointment of a merchant banker has been made mandatory for the open market buyback route.
  3. At least 40% of the funds earmarked for the buyback must be utilised in the first half of the buyback period.
  4. Shares held by promoters and their associates are to be frozen during the buyback period.
  • A. 1, 3 and 4 only
  • B. 2 and 3 only
  • C. 1 and 4 only
  • D. 1, 2 and 3 only

Q3. The SEBI (Buy-back of Securities) Regulations, 2018 — under which the June 2026 reintroduction of the open market buyback route has been operationalised — derive their statutory authority primarily from which of the following?

  • A. Sections 11 and 30 of the SEBI Act, 1992 read with Section 68 of the Companies Act, 2013
  • B. Sections 24 and 25 of the Securities Contracts (Regulation) Act, 1956
  • C. Sections 15 and 16 of the Depositories Act, 1996
  • D. Sections 29A and 29B of the Reserve Bank of India Act, 1934

Q4. The reintroduction of the open market stock buyback route announced in June 2026 is operationalised by SEBI, which functions as a statutory regulator under which of the following Union ministries?

  • A. Ministry of Corporate Affairs
  • B. Ministry of Finance
  • C. Ministry of Commerce and Industry
  • D. Ministry of Law and Justice

Q5. In the context of SEBI's June 2026 decision, the term 'open market buyback' is most accurately described as which of the following?

  • A. A repurchase by a company of its own shares exclusively from foreign portfolio investors at a SEBI-notified floor price
  • B. A repurchase by a company of its own shares from existing shareholders through anonymous, price-discovered trades on stock exchanges
  • C. A repurchase by a company of its own shares only from retail investors at a fixed premium determined by merchant bankers
  • D. A mandatory acquisition by promoters of all public shareholding in a listed company prior to voluntary delisting