Physical settlement requirement mandates phased migration of cash-settled stock derivatives to delivery-based settlement under enhanced eligibility and implementation obligations.
Mandatory physical settlement is prescribed for all stock derivatives, replacing cash settlement; affected stocks are ranked by average daily market capitalization for December 2018 and migrated in phased tranches during 2019. New derivatives meeting enhanced eligibility must be physically settled. Stock Exchanges must amend rules, implement systems, notify market participants, disseminate the circular, and report implementation status monthly to SEBI. Other conditions from the April 11, 2018 circular continue to apply.

Offer for Sale eligibility expanded and a cancellation mechanism formalised, requiring exchanges to amend systems and rules.
The circular amends the OFS framework by setting a market capitalization threshold computed as the six month average daily market capitalization prior to the month of the OFS, and by permitting the seller to cancel the entire offer if sufficient non retail demand at or above the floor price is not achieved on T day, thereby foregoing retail bidding on T+1. Recognised stock exchanges must implement systems, amend bye laws, notify member brokers, and disseminate the circular; all other OFS conditions in earlier circulars remain unchanged.

Creation of segregated portfolio for downgraded debt enables separate NAVs, restricted redemptions, and mandated disclosures to investors.
Segregated portfolios may be created at the ISIN level for debt or money market instruments affected by issuer level credit events, subject to scheme disclosures and trustee approved AMC policy. AMCs must decide on the credit event day, obtain trustee approval within one business day, suspend transactions until approval, and if approved, allocate equal segregated units to existing investors, disclose NAVs for main and segregated portfolios from the credit event date, restrict subscriptions and redemptions in the segregated portfolio, enable listing and transfers to facilitate exits, and value affected securities using fair valuation reflecting the credit event.

Change of name in Beneficial Owner account allowed with affidavit, newspaper publications and KYC; depositories to implement safeguards.
Change of name in a Beneficial Owner (BO) account for individuals, where official gazette publication is not available, is allowed subject to submission of a request letter, a sworn affidavit before a Notary Public/Magistrate of First Class/Executive Magistrate stating reason and address, paper publication in one local and one national newspaper, and KYC in the changed name; DPs shall collect self attested copies, verify with originals and retain records, and depositories must implement the provisions within three months, maintain an audit trail, amend relevant rules and notify DPs.

Margin Period of Risk strengthened, requiring longer MPOR assumptions and scaled-up initial margins to address liquidation risk.
The circular mandates a minimum Margin Period of Risk (MPOR) of two days or higher per product based on liquidity, requiring Clearing Corporations and Exchanges to scale up initial and exposure margins via an expanded Price Scan Range (PSR) for computing Worst Scenario Loss; it also standardises PSR for index contracts and raises the Short Option Minimum Charge.

Early warning mechanism to detect diversion of client securities and enable preventive regulatory actions by exchanges and depositories.
Early warning mechanism requires Stock Exchanges, Clearing Corporations and Depositories to identify and share alerts indicating diversion of client securities-such as financial deterioration of brokers, suspicious pledge or demat account activity, investor complaints, RBS/Enhanced Supervision flags and inspection non cooperation-and to reconcile clearing pay in/pay out with depository transfers. Where deterioration or unauthorized transfers are established, exchanges and depositories may jointly apply preventive measures including blocking collateral, limiting proprietary trading, deactivating terminals, inspections, appointing forensic auditors, freezing client account debits, imposing concurrent audits and restricting use of powers of attorney. Implementation date: February 1, 2019.

Market SOC framework mandates MII majority ownership and voluntary intermediary subscription to meet cyber security compliance requirements.
SEBI requires MIIs to establish a separate Market SOC with MIIs holding at least fifty-one percent, available on voluntary subscription to intermediaries, providing technological cyber security services while intermediaries retain responsibility for people and process obligations; the Market SOC must ensure adherence to minimum IT and security protocols, issue prescribed audit reports to participants, undergo annual audits by the MII with submission to SEBI, and secure regulatory approval under applicable securities regulations, with MIIs required to amend bylaws and systems within six months.

Clubbing of FPI investment limits clarified: common ownership or control triggers grouping, with exemptions and breach remedies.
Clubbing of FPI investment limits is based on common ownership exceeding fifty percent or on common control, with entities so connected treated as an investor group and their investments aggregated to the single-FPI limit. Exemptions apply to appropriately regulated public retail funds and specified look-through or manager-regulated structures. Foreign government agencies forming part of an investor group are clubbed with the government and related entities; distinct recognition under bilateral treaties may be permitted. Breach remedies permit divestment within five trading days from settlement or conversion of excesss holdings into foreign direct investment.

Significant beneficial ownership disclosure required in shareholding pattern using prescribed Table V format, effective from quarter ending March 2019.
All listed entities must disclose significant beneficial owners using the prescribed Table V format, which records details of the significant beneficial owner, the registered owner, particulars of shares in which significant beneficial interest is held, and the date of creation or acquisition of such interest; terms follow the Companies (Significant Beneficial Owners) Rules, 2018, stock exchanges must notify and disseminate the circular, and the requirement takes effect from the quarter ending March 31, 2019.

Cyber Security Operation Center requirement mandates round the clock monitoring, incident sharing and governance for market infrastructure institutions.
MIIs must establish a Cyber Security Operation Center (C-SOC) providing 24x7 identification, monitoring, analysis, response, recovery and reporting of cyber incidents. The C-SOC shall perform continuous threat analysis, log and traffic monitoring, VAPT, forensic and root cause analysis, simulations, automation and DR parity; be headed by a CISO reporting to the MD & CEO; deploy designated security technologies; follow a board approved Cyber Crisis Management Plan; adopt one of the specified in house or shared staffing models while retaining ultimate responsibility; provide quarterly board reports; and include C SOC implementation in the annual systems audit.

Cyber security obligations for stock brokers and depository participants require mandated resilience, governance and reporting under SEBI framework.
SEBI requires all registered Stock Brokers and Depository Participants to adopt a board approved Cyber Security and Cyber Resilience policy setting out identification, protection, detection, response and recovery processes, appoint a Designated Officer and Technology Committee, implement access controls, strong authentication and data encryption, conduct regular VAPT and continuous monitoring, report quarterly threats to exchanges/depositories, and undergo annual independent audits, with vendors and market infrastructure institutions required to follow or assume responsibility for applicable controls.

Trading hours for commodity derivatives extended, subject to adequate risk management and infrastructure implementation.
Extension of permissible trading hours for commodity derivatives allows recognised exchanges to set longer session timings for non agricultural and agricultural commodity contracts (non agricultural with extended late evening end times linked to the US daylight savings cycle; agricultural until 21:00). The change modifies prior time limit rules, takes effect thirty days after the circular, and is subject to exchanges and clearing corporations putting in place adequate risk management, surveillance and infrastructure. Exchanges must amend bye laws, notify brokers, publish the change and report implementation.

Interoperability among clearing corporations mandates linked risk frameworks, segregated inter CCP collateral and multilateral netting for settlement.
Interoperability among clearing corporations requires recognised CCPs (excluding IFSCs) to enable consolidation of clearing across trading venues via peer-to-peer links under bilaterally approved risk frameworks or, where directed, participant links subject to host CCP rules. Inter-CCP collateral must cover exposures through prescribed margins and additional capital held in segregated accounts, settlement shall occur through multilateral netting on the rolling T+2 schedule, and default handling will follow the prescribed default waterfall. Multipartite agreements must address risk, settlement, surveillance, data sharing and dispute resolution.

Alternative Investment Funds in IFSC: registration, investor eligibility, permissible investment routes and prescribed corpus and investor minima clarified.
SEBI's operating guidelines permit AIFs established in an IFSC to register under the AIF Regulations subject to Chapter II application procedures and prescribed fees. AIFs may accept eligible IFSC investors and invest in India via permitted routes including FPI, FVCI or FDI consistent with applicable FDI/RBI policy. Schemes must meet minimum corpus and investor subscription thresholds, sponsors/managers must maintain a continuing interest (not via fee waiver), custodians are required in specified cases, and angel funds face distinct corpus, investor and investee eligibility constraints; reporting is in USD million.

Mandatory debt issuance requirement for large corporates to fund a portion of incremental borrowings, with disclosures and penalties.
Large listed entities that meet specified listing, borrowing and credit rating thresholds must source a mandated portion of their incremental long term borrowings by issuing debt securities. The framework defines incremental borrowings, sets phased effective dates, requires annual disclosures certified by the company secretary and CFO and included in audited results, establishes initial annual compliance transitioning to a two year block compliance with a monetary fine for unremedied shortfalls, and assigns stock exchanges duties to collate disclosures, collect fines and remit proceeds to the regulator.

Disclosure of reasons for delay in submission of financial results requires listed entities to promptly inform stock exchanges of causes.
If a listed entity fails to submit financial results by the due date, it must disclose detailed reasons for the delay to the stock exchanges within one working day of the due date; if the decision to delay was taken before the due date, the entity must disclose detailed reasons within one working day of that decision. Stock exchanges must notify listed entities and disseminate the requirement, which is effective immediately.

Commodity risk disclosure required for listed entities; standardised annexure format mandated for annual corporate governance reports.
Listed entities must disclose commodity price risk and hedging activities in the Corporate Governance Report of the annual report using the detailed annexure-format prescribed by the regulator. The mandated format and periodicity are intended to show the commodity risks faced, management of those risks, and the company's hedging policy. Recognised stock exchanges are to disseminate the circular to ensure consistent implementation.

Enhanced CRA disclosure requirements mandate detailed analytical, liquidity and transition-rate disclosures to improve investor transparency and monitoring.
SEBI requires CRAs to enhance press releases by expanding the Analytical Approach to disclose parent/group/government support and consolidation details, and to include a dedicated Liquidity section addressing liquid assets, access to credit lines, liquidity coverage and any external support links. CRAs must publish average one year Transition Rates over a multi year period using weighted averages across static pools, submit half yearly data on sharp rating actions for exchange disclosure, and extend half yearly Internal Audit scope to cover transition rate and default rate methodologies.

Standardised transfer of physical securities: indemnity, address verification, advertisement notice, and temporary lock in after registration.
Standardised norms require that transfers in physical mode not be rejected solely for missing PAN for deeds predating LODR; name mismatches can be cured by specified identity documents; major signature discrepancies require LODR procedures, reasonable efforts to contact the transferor, and, if untraceable, registration upon transferee submission of an indemnity bond, address proof, an undertaking not to transfer or dematerialise for the lock in period, publication of a newspaper notice with an objection window, stamping and temporary lock in of transferred securities, and disclosure of transfer particulars on the issuer's and exchange websites.

UPI payment mechanism for retail IPO ASBA applications enables electronic mandate blocking and accelerates listing timelines.
Introduction of Unified Payments Interface (UPI) as an alternate payment mechanism integrated with Application Supported by Blocked Amount (ASBA) for retail individual investors applying through intermediaries, enabling electronic one time mandates to block funds at bidding. The circular prescribes a three phase rollout commencing January 1, 2019, defines roles for Sponsor Banks and Self Certified Syndicate Banks (SCSBs), mandates real time validation of PAN and demat details by stock exchanges with depositories, requires NPCI UPI certification and mock trials, and sets reconciliation, cut off and T+6 listing timetables during transition, with Phase III to introduce a final reduced timeline.