Stories
SEBI to Include Tender Offers and Buybacks Under Interoperability by November-End
- •SEBI plans to bring tender offers, share buybacks, and offers for sale under the clearing interoperability framework by the end of November.
- •The initiative aims to reduce brokers' compliance costs, improve capital efficiency, and simplify clearing arrangements across stock exchanges like BSE and NSE.
- •Currently, these specific transactions remain outside the scope of interoperability, forcing brokers to maintain separate parallel clearing arrangements and incurring additional operational burdens.
- •Industry bodies and market participants including the Brokers’ Industry Standards Forum and ANMI have widely welcomed the move as a step toward simpler regulation and enhanced market efficiency.
Key Questions Answered
SEBI plans to bring tender offers, share buybacks, and offers for sale under the clearing corporations' interoperability framework by the end of November 2026. This expansion aims to reduce brokers' compliance costs, improve capital efficiency, and simplify clearing arrangements across stock exchanges.
Because transactions like tender offers, buybacks, and offers for sale remain outside the current interoperability framework, brokers must maintain parallel clearing accounts with both BSE and NSE clearing corporations. This requirement adds to their operational expenses, capital blocking, and compliance burden.
Interoperability among clearing corporations was initially introduced in June 2019. The framework allows clearing corporations of different stock exchanges to work together, enabling market participants to consolidate clearing obligations and optimize collateral usage.
