Foreign investment limits in infrastructure securities require FDI prior approval; FII limited to secondary market and no board seats.
Policy permits aggregate foreign investment in infrastructure companies in securities markets with distinct FDI and FII allocations; FDI requires prior FIPB approval, FII restricted to secondary market purchases and barred from board representation; no foreign investor, including persons acting in concert, may exceed the prescribed shareholding threshold; SEBI and RBI to amend regulations and recognised stock exchanges remain subject to the public shareholding limit under the Securities Contracts (Regulation) Regulations, 2006.

Investor grievance redressal: Entities must designate exclusive e-mail IDs for complaints and display them prominently online.
SEBI directs stock exchanges, brokers, listed companies, depositories and depository participants to designate an exclusive e-mail ID for investor complaints, display it prominently on websites and materials, amend bye-laws and listing agreement clauses as needed, disseminate the requirement to members/DPs, include the e-mail ID in outreach campaigns, and report implementation status to SEBI in the Monthly Development Report under Section 11(1).

Custodian of Securities amendment requires FIIs and custodians to use the prescribed annexure format for regulatory compliance.
SEBI issued a circular enclosing the SEBI (Custodian of Securities) (Second Amendment) Regulations 2006 and the gazette notification, informing Foreign Institutional Investors and custodians that the prescribed compliance format required under regulation 3(iii)(b)(4) is enclosed as Annexure A and that the notification and related materials are available on the regulator's website for necessary action.

Disbursement rules: surplus from a defaulter broker's multiple memberships must be credited to the exchange IPF/CPF to protect investors.
Where a defaulter broker has multiple exchange memberships, any amount remaining after satisfying eligible claims of the exchange, SEBI and other exchanges shall be credited to the IPF/CPF of the exchange; exchanges must amend bye laws, notify members, and report implementation to operationalise this disbursement sequence.

FII debt investment limits reallocated between account types, with headroom allocation rules and mandatory custodial reporting enforced.
Revision reallocates aggregate FII debt ceilings between 100% debt accounts and general 70:30 FIIs/Sub-Accounts, setting distinct permissible limits for Government securities and Corporate Debt while preserving overall caps. Separate headrooms for 100% debt accounts will be allocated on a first-come-first-serve basis with a seven-day utilisation window; approvals beyond specified thresholds for 70:30 accounts follow the pre-existing approval procedure. Fortnightly custodial reporting in the prescribed format to SEBI is required to monitor allocation and utilisation; Upper Tier II instrument limits remain unchanged.

Corporate bond reporting requires prompt reporting to an authorized platform and real-time public dissemination, with settlement bilateral.
SEBI directs BSE to operate an authorized corporate bond reporting platform from January 1, 2007 to capture trades in listed debt securities; all issuers, intermediaries and contracting parties must report trades (intermediaries report executed transactions) within thirty minutes and settlement information within one trading day. The platform will provide access (including VPN for non-members), publish reported data in real time, operate specified hours, and serve only as a reporting facility while bilateral settlement obligations remain with intermediaries and parties.

Venture capital share transfer exemption clarified: applies where VC-held investee later lists and shares transfer to promoter under agreement.
The exemption under regulation 3(1)(ia) applies where a VCF or FVCI transfers the shares of a venture capital undertaking that was unlisted at the time of investment and subsequently became listed, to the promoter of that same venture capital undertaking pursuant to an agreement. Transfers by a VCF or FVCI of shares of any other listed company are excluded from the exemption. Transfers of shares of an unlisted venture capital undertaking to its promoters are covered by an existing exemption and were not the intended subject of regulation 3(1)(ia).

Tariff transparency for depository participants requires annual submission and public web disclosure for investor comparison.
Depository Participants must submit their tariff/charge structure to their depository annually by 30 April and notify any changes when effected; depositories must implement systems, formats and periodicity to collect this data, publish comparative tariff/charge information on their websites, amend applicable bye laws and business rules, notify DPs of the requirement, and report implementation status to SEBI in the Monthly Development Report.

Dematerialisation requirement: securities shift to rolling settlement where majority non promoter holdings are dematerialised and no other grounds persist.
Securities with connectivity to both depositories may be shifted from Trade for Trade Segment to rolling settlement provided a majority of non promoter holdings are in dematerialised form, supported by a certificate from the Registrar and Transfer Agent or, if no separate RTA exists, from a practising company secretary or chartered accountant, and provided there are no other grounds for continuation in the Trade for Trade Segment.

Account statement dispatch rules require periodic statements for systematic investment plans and prompt free issuance on investor request.
SEBI requires mutual funds to dispatch account statements for SIP/STP/SWP quarterly within ten working days of quarter-end, with the first statement within ten working days of initial investment; upon investor request funds must supply statements free within five working days and may email monthly soft copies if mandated. Funds must also issue statements to investors inactive for six months, together with Portfolio Statements or Annual Reports, reflecting the latest closing balance and unit value, with electronic delivery permitted where mandated.

Dematerialisation requirement: securities with connectivity to both depositories may shift from trade-for-trade to rolling settlement.
Shifting trading from the Trade-for-Trade segment to rolling settlement is permitted for securities with connectivity to both depositories provided at least 50% of non-promoter holdings are in demat mode, supported by a certificate from the Registrar and Transfer Agent or, where no separate RTA exists, from a practicing Company Secretary or Chartered Accountant, and provided there are no other grounds for continued TFTS trading.

Permanent Account Number requirement for NRIs/PIOs to operate BO and trading accounts; deadline December 31, 2006.
Mandatory Permanent Account Number (PAN) compliance is required for operation of BO accounts and trading; NRIs/PIOs/foreign nationals previously allowed limited purpose BO/trading accounts without PAN must obtain PAN by December 31, 2006 or face account inoperability. Income Tax Department guidance permits PAN applications from persons outside India and foreign citizens based on passport and foreign bank account proofs, with procedural codes, AO guidance, courier charges, and disclosure requirements for service providers.

Conflict of interest restriction: mutual fund key personnel barred from venture capital fund governance; VCFs must confirm compliance promptly.
A regulatory directive prohibits Key Personnel of mutual funds-defined to include the chief executive (by whatever designation), chief investment officer, fund managers and departmental heads of an asset management company or investment manager-from serving on the board or in governance or investment roles of venture capital funds. Venture capital funds must confirm compliance within the period prescribed in the circular; the guidelines are issued by the Board under its statutory authority.

Pre-issue publicity restrictions: public communications must be factual, consistent, and disclose filing status until allotment of securities.
Amendments require that from board approval until filing a draft offer document, public communications be consistent with past practices or prominently disclose a proposed issue; from filing until allotment such communications must state filing status and availability of offer documents online, contain only factual information, exclude extraneous material and avoid projections; issuers must promptly disclose material developments that may affect the company by public notice in the newspapers used for pre-issue advertising.

Lock-in exemption for venture capital pre-IPO shares restricted; minimum holding required before filing draft prospectus to qualify.
Amendments restrict the pre-IPO lock-in exemption for SEBI registered Venture Capital Funds and Foreign Venture Capital Investors so that only shares held for at least one year as on the date of filing the draft prospectus qualify; periods during which convertible instruments were held as fully paid up are included for computing the holding period, convertible instruments being deemed fully paid up only when all amounts payable have been paid and no further payment is envisaged.

Dematerialisation requirement enables shift from trade for trade to rolling settlement when non promoter holdings are dematted and certified.
SEBI directs stock exchanges to shift securities of companies connected to both depositories from TFTS to rolling settlement only if at least fifty percent of non promoter holdings are in dematerialised form, certified by the company's RTA or, if none, by a practicing Company Secretary or Chartered Accountant, and provided there are no other reasons to continue trading in TFTS; exchanges must report actions taken in the Monthly/Quarterly Development Report (Section II, item no. 13).

Uniform cut-off timings for NAV applicability ensure consistent valuation and investor protection across mutual fund schemes.
The circular prescribes uniform cut-off timing rules for NAV applicability across mutual fund schemes (excluding international schemes and exchange-traded transactions), distinguishing operative NAV determination for liquid fund schemes and for other schemes based on receipt time and payment instrument type; mandates uniform application to all investors, timely deposit of subscription instruments with bank facilities, remedial liability for losses from non-compliance, time-stamping at disclosed official points with tamper-proof machines per Schedule II, record preservation, and specified compliance and disclosure reporting to trustees and the Board.

Payment of fees by stock brokers: option to adopt amended fee schedule from October or April with consent deadlines.
Stock brokers within subclauses (c) and (d) of clause 1 of Schedule III A may opt to pay fees under the amended Schedule III A either from October 01, 2006 or from April 01, 2007; written consent in the specified Annexure 1 format must be submitted to the stock exchange on or before October 31, 2006 for the October option, or on or before February 28, 2007 for the April option. The corrigendum corrects an earlier circular's erroneous indication of April 01, 2006 as the later effective date.

Broker fee payment obligations clarified: amended schedule mandates reporting, remittance procedures, and monthly remittance deadlines.
The amended schedules require brokers to opt into the new fee framework by specified dates and to designate in writing which exchange will collect fees for their reported off-market transactions; exchanges must obtain these declarations. Exchanges shall remit collected fees by banker's cheque or demand draft and submit broker-level information in prescribed annexure formats for cash and derivative segments. Exchanges must amend bye-laws to facilitate collection, notify members, publish the changes, and report implementation; fee collection begins 1 October 2006 with scheduled remittance deadlines thereafter.

Uniform NAV cut-off timings determine applicable NAV for mutual fund purchases, redemptions, switches and sweeps.
Uniform cut-off timings determine the NAV applicable to mutual fund transactions (excluding international schemes and exchange trades). Mutual funds must uniformly apply cut-off timings, promptly deposit subscription instruments into banks, and the asset management company must indemnify losses from non-compliance. Distinct prospective NAV rules govern liquid funds and other schemes for purchase, repurchase, switch and sweep transactions. Official points of acceptance must be disclosed, time-stamping machines deployed with specified safeguards, and compliance reported in periodic trustee and compliance reports; guidelines are to be disclosed in offer documents.