Relaxation of compliance timelines extends deadlines for client call recordings and KYC uploads, allowing a backlog clearance window.
Relaxation of timelines extends the deadline for maintaining client call recordings and provides an exclusion period with a defined backlog-clearance window for uploading client KYC application forms and supporting documents to KRA systems. Stock exchanges and clearing corporations must notify and require members to clear any backlog within the prescribed windows; the measures are issued under statutory regulatory powers to protect investor interests and regulate securities markets.

Creation of security and debenture trustee due diligence requirements: implementation timeline extended to ease compliance obligations.
SEBI has deferred the effective date for compliance with the requirements on creation of security for listed debt issuances and the due diligence obligations of debenture trustees, in response to representations from debenture trustees and operational challenges due to the COVID 19 pandemic; the extension applies to issuers proposing listed debt, recognized stock exchanges and registered debenture trustees and is issued under SEBI's regulatory powers to protect investors and regulate the securities market.

Order Management System requirement mandates automated scheme-wise order placement with audit trail and time-stamping for fund managers.
Trade execution and allocation obligations require use of an automated Order Management System for equity and equity-related orders, with scheme-wise placement by fund managers or authorised employees, and maintenance of a scheme-wise audit trail and time-stamping from fund manager instruction through dealer placement, execution and allocation; discretion-free transactions may be excluded from OMS if documented and equivalent audit trails and compliance with allocation limits are maintained, and fund managers retain responsibility for order placement.

Proxy advisor reporting obligations require prompt client alerts for errors and rapid communication of material revisions to protect investors.
SEBI-registered proxy advisors must alert clients within 24 hours of receipt of information about factual errors or impending material revisions to reports, and communicate any material revisions to clients within 72 hours of receipt while ensuring adequate time for clients to make informed decisions; these modified time-bound notification and communication duties supplement the existing procedural framework and are issued under SEBI's regulatory mandate to protect investor interests.

Schemes of arrangement and relaxations under rule 19: consolidated procedural and compliance guidance for listed entities.
Master compilation providing procedural and compliance guidance for listed entities on Scheme of Arrangement and the Relaxation under Sub-rule (7) of rule 19, consolidating operative circulars that set out filing, disclosure, process requirements, and conditions for relaxations, while stating that any inconsistency will be resolved in favour of the underlying circulars.

Core Settlement Guarantee Fund and default waterfall rules for LPCC set contribution, replenishment, and loss allocation mechanisms.
SEBI establishes that LPCC Core SGF contributions shall be made by issuers (upfront levy based on issuance value), clearing members (risk based primary contribution to cover residual margin deficits, exposure free and pro rata), and the LPCC (transfer of profits and optional additional funds counted as net worth). Replenishment must occur immediately after usage with a once per 30 day replenishment cap from the notice of default; LPCC must temporarily cover failures to replenish. A prescribed default waterfall sequences member monies, insurance, issuer contribution, LPCC resource layers, Core SGF components, capped calls on non defaulting members, and finally pro rata haircuts to payouts, with specified calling, resignation and SEBI approval conditions.

Stress testing cap for extreme commodity price movements replaces outliers beyond a high z-score using long term mean and sigma.
SEBI amends stress-testing norms for commodity derivatives to cap extreme historical price returns by replacing returns beyond a Z-score of 10 with the Z-score-10 movement; the Z-score is computed using mean and sigma of returns over the applicable MPOR across a 15-year period. This measure addresses exceptional volatile price events and is effective on issuance.

Permissible holders of Depository Receipts: NRIs allowed for employee benefit, bonus and rights issues; issuers must identify NRI holders.
SEBI clarifies that permissible holders of Depository Receipts must be non residents and not NRIs, but creates exceptions allowing NRIs to hold DRs issued under share based employee benefit schemes and to receive DRs via bonus or rights issues. Beneficial Owner retains the Prevention of Money Laundering Rules definition, and both permissible holders and beneficial owners remain responsible for compliance. Listed companies must identify NRI DR holders under employee schemes and provide that information to the designated depository for monitoring; exchanges and depositories must amend rules and notify market participants.

E voting access through demat accounts enables single-login shareholder voting with depository authentication and OTP security.
SEBI directs integration of remote e-voting with depositories so demat account holders can access ESP portals via a single login-either through direct registration with depositories or via demat account interfaces-where authentication is performed by the depository, confirmatory SMS is sent after voting, and depositories will send pre-voting alerts to demat holders; a second-factor OTP verification is mandated in a subsequent phase, with depositories, listed companies and ESPs providing helplines and disclosure links to assist shareholders.

ASBA payment mechanism expanded to allow call money payments for partly paid securities via SCSBs and linked trading demat bank accounts.
The circular expands the use of ASBA and additional electronic channels to permit subscription and payment of balance money for calls on partly paid specified securities through online SCSB portals, physical SCSB branches, and linked trading, demat and bank accounts, with intermediaries and RTAs required to guide holders on the mechanism.

Transfer and dematerialization of re-lodged physical shares: endorsed certificates retained and demat request required within specified validity period.
Upon processing a re-lodged transfer, the RTA retains the endorsed physical certificates and issues a Letter of Confirmation to the transferee with endorsement, folio, certificate and distinctive numbers. The transferee must present that Letter to a Depository Participant and submit a Dematerialization Request Form so the DP can process demat credit on the basis of the Letter. If the transferee does not submit a demat request within the letter's validity, the shares will be credited to the company's Suspense Escrow Demat Account. RTAs must notify depositories of any lock-in for processing as lock-in demat.

Compliance timeline extensions for regulated intermediaries permit delayed submission of audits and KYC uploads amid pandemic disruptions.
SEBI extended compliance timelines due to COVID 19: trading and clearing members received extensions to submit half year Internal Audit, System Audit and half year net worth certificates for the period ended September 30, 2020 (with deadlines in late December 2020 and specified items to January 31, 2021). Depository Participants received extensions for half year Internal Audit reports and annual systems audit to December 31, 2020; uploading client KYC to KRA had an exclusion period through December 31, 2020 plus a 15 day backlog clearance window.

Simulated test environment optionalizes mandatory mock trading sessions; exchanges must provide access and monthly reporting.
Mandatory mock trading sessions become optional if a Recognised Stock Exchange provides a simulated test environment available to all members, for at least two hours after market hours on at least two trading days weekly, with data from at least one trading day in all segments not older than one month. Members with approved algorithms must participate at least one trading day monthly and such participation shall be audited and reported in the System Auditor's report; exchanges must provide daily logs to members and a summary to the regulator in the monthly development report.

Unified Payments Interface (UPI) adoption enables app/web public issue applications with mandate-based fund blocking and electronic reconciliation.
Permits application to public issues of debt, preference and securitised instruments via stock-exchange app/web interfaces and intermediaries with blocking of application funds through the Unified Payments Interface (UPI). Stock exchanges and depositories must validate PAN and demat details in near real time and transmit bid and UPI ID data to a designated Sponsor Bank, which initiates a one-time mandate for investor authorization. Upon mandate acceptance banks block funds and communicate status to Sponsor Bank, stock exchange and registrar; registrar reconciles block confirmations, prepares basis of allotment, and triggers debit/collect and unblocking actions for final settlement and allotment.

Preferential issue ineligibility clarified: parties transferring units within six months, including sponsors, are barred from allotment.
Preferential issue of units by a listed InvIT shall not be made to any person who sold or transferred units of the issuer during the six months preceding the relevant date; if any person belonging to a sponsor sold or transferred units in that period, the sponsor is ineligible for allotment on a preferential basis.

Continuous disclosure compliance: exchanges to impose uniform fines and enforcement measures for listed debt securities, preference shares and commercial papers.
SEBI mandates a uniform enforcement framework requiring recognized stock exchanges to monitor continuous disclosure compliance by issuers of listed Non-Convertible Debt Securities, NCRPS and Commercial Papers, levy specified fines for enumerated disclosure failures, coordinate actions across exchanges for multi-listed entities, credit fines to the Investor Protection Fund, and impose restrictions (including prohibition on issuance and further listing) until compliance and payment of fines, with publication of actions and allowance for deviations only with written reasons.

Debenture trustees must monitor security created, submit asset cover certificates and publish timely disclosure of defaults and compliance.
Debenture trustees must independently and periodically assess issuer compliance with issue covenants, with focused monitoring of the security created and asset charges. Trustees shall embed monitoring terms in trust deeds, obtain issuer documents, and submit prescribed reports (quarterly Asset Cover Certificates, guarantor net worth, valuations) to exchanges within specified timelines; amend existing trust deeds within 120 days; follow prescribed breach response procedures; furnish revised half yearly reports to the regulator; and publish defined disclosures on trustee websites within stated timelines.

Outsourcing obligations and liability: LPCCs may outsource core IT to clearing corporations but remain primarily liable for failures and continuity.
LPCCs may outsource core IT and operational activities to existing Clearing Corporations under comprehensive agreements that ensure redundancy, set selection criteria, define fees, and require service providers to meet regulatory and cybersecurity standards; the LPCC remains primarily responsible for risk management, clearing and settlement, dispute liability, business continuity, disaster recovery and must preserve regulator access while embedding indemnity and financial disincentives to prevent market disruption.

Investor grievance redressal mechanism enforces timelines, IGRC conciliation, and arbitration as escalation for unresolved complaints.
Investor grievance redressal mechanism requires Stock Exchanges to resolve investor complaints within prescribed timelines, seek additional information within seven working days, and record reasons for any delay. Service-related complaints are handled by the Exchange with escalation to the Investor Grievance Redressal Committee (IGRC) where complainants remain dissatisfied. IGRC has a 15-working-day conciliation period, extendable to an overall 30-working-day period if additional information is sought, must not dismiss complaints for lack of information or complexity, and may recommend admissible claim values which Exchanges must block from member deposits.

Liquidity requirement for open ended debt schemes imposes minimum liquid asset holdings and mandatory stress testing.
SEBI requires most open ended debt schemes to hold at least ten percent of net assets in liquid assets (cash, government securities, T bills, repo on government securities), excludes these holdings from scheme characteristic calculations, and mandates AMCs to restore such exposure before further investments if breached; additionally, all open ended debt schemes except overnight schemes must conduct stress testing under AMC stipulated guidelines, with a committee to review norms and methodology.