Switched Reluctance Machines (SRM) are emerging as a possible alternative in terms of cost and supply stability to rare earth based electric vehicle traction systems. However, because of the huge amounts of energy stored and transferred back and forth between the DC source and the SRM, large DC-link capacitors must be used as buffers, which increases overall costs and size. This paper proposes a novel modulation technique which forces the exchange of energy between phases while decreasing the energy transfer between the DC bus and the SRM. This means lower DC bus currents (capacitor size and cost reduction) and lower Joule-effect conduction losses (better efficiency). The proposed modulation has been validated experimentally in a test bench and compared with the conventional torque-sharing function.