India's securities regulator announced it will bring back open-market share buybacks, giving companies a tool to support their share prices directly. The move comes as Indian equities have underperformed relative to global markets, leaving investors seeking ways to boost valuations and restore confidence in listed companies.

Share buybacks allow firms to repurchase stock from investors at market prices, reducing outstanding shares and often lifting earnings per share. This mechanism can signal management confidence while providing support during periods of market weakness or investor skepticism.

Regulatory changes like this typically emerge when markets face persistent downward pressure or when authorities want to provide additional flexibility for corporate actions. By reintroducing open-market purchases, India's securities regulator aims to give companies more options beyond traditional buyback programs that may have been restricted.

The reintroduction suggests policymakers recognize the need for active market support measures. Companies can now deploy capital more strategically through buybacks rather than waiting for organic demand to return, potentially narrowing the performance gap with international peers.