Calendar spread treatment extended until near month expiry to prevent abrupt margin increases for exchange traded equity derivatives.
Calendar spread positions in exchange traded equity derivatives shall receive calendar spread treatment until the expiry of the near month contract, replacing the prior rule that treated the far month as naked three trading days before expiry; this change prevents sudden margin increases and applies to exchange derivative segments and their clearing houses under the regulator's authority to protect investors and promote orderly market development.

Exchange Traded Currency Derivatives framework requires SEBI approval, segment safeguards, clearing risk controls and position limits.
Establishes a regulatory framework for Exchange Traded Currency Derivatives requiring Recognized Stock Exchanges to obtain SEBI approval with specified product details and bye laws, comply with product design and surveillance standards, segregate currency segment membership, and prevent participation by persons resident outside India; mandates Clearing Corporations/Houses to secure SEBI approval and RBI permission under FEMA for clearing and settlement and to implement prescribed risk management measures; and prescribes bank participation, certification of trading personnel, and gross open position caps for Trading Members.

Eligibility of nominated directors for ESOS clarified, and graded vesting accounting aligned with revised guidance for amortisation.
A nominated director may participate in a company's ESOS if the nominating contract permits acceptance of options, prohibits renunciation in favour of the nominating institution, and specifies conditions for accepting fees and incentives; the contract must be filed by the nominating institution with the company and by the company with its stock exchanges, and the director must furnish the contract at the first board meeting attended after nomination. Options granted to such nominated directors cannot be renounced in favour of the nominating institution. Graded vesting accounting may be amortised per separate vesting portions or over the aggregate vesting period, subject to recognition at least equal to the vested portion's value.

Dematerialization requirement enables move from trade-for-trade to rolling settlement when non promoter holdings are dematerialized and no other grounds exist.
Stock exchanges may shift securities that have established connectivity with both depositories from trade for trade to normal rolling settlement if at least fifty percent of non promoter holdings are dematerialized, evidenced by a certificate from the Registrar and Transfer Agent or, if none exists, from a practicing company secretary or chartered accountant, and provided there are no other grounds for continuation of trade for trade; exchanges must report action taken in the Monthly/Quarterly Development Report.

ASBA process: blocked account application method enabling certified banks to hold funds and facilitate allotment in book built issues.
SEBI introduces Applications Supported by Blocked Amount (ASBA) as an alternate payment mechanism for book built public issues whereby eligible resident retail investors submit ASBAs to certified Self Certified Syndicate Banks (SCSBs) which block the application money in the investor's bank account, upload bid details to the stock exchanges, and on instructions from the Registrar unblock or transfer funds after finalisation of allotment; lead merchant bankers, registrars and stock exchanges have specified disclosure, reconciliation and system obligations and timelines.

Applications Supported by Blocked Amount (ASBA) enables blocking of investor funds until allotment in book built issues.
ASBA permits resident retail investors bidding at cut off to authorise SCSBs to block application funds in their bank accounts until allotment finalisation or withdrawal. Certified SCSBs must block/unblock funds, upload applicant data to stock exchange electronic bidding systems, designate Controlling and Designated Branches, and retain records; Registrars reconcile and verify bid data against depository records, finalise basis of allotment, instruct SCSBs to transfer funds, and maintain electronic records and complaint redressal. Merchant bankers and stock exchanges must enable disclosures, forms, timelines, secure data interfaces and accurate transmission of bid files.

Applications Supported by Blocked Amount introduced as alternate payment method for retail book-built public issues, shifting blocking responsibility to banks.
Introduction of Applications Supported by Blocked Amount (ASBA) as an alternate payment mechanism for book-built public issues permitting eligible resident retail investors to apply by authorising an SCSB to block application monies in a specified bank account until allotment finalisation, withdrawal, rejection or issue failure. SCSBs must certify systems, designate Controlling and Designated Branches, block funds, upload prescribed bid data to the Stock Exchange electronic bidding system, act on Registrar instructions to unblock or transfer funds, maintain records, and are liable for omissions or commissions; Registrars, Merchant Bankers and Stock Exchanges have specified reconciliatory, disclosure and system roles and timelines for processing ASBAs.

Applications Supported by Blocked Amount lets retail investors apply by blocking bank funds, streamlining book-built public issue subscriptions.
Introduction of Applications Supported by Blocked Amount (ASBA) as a supplementary method for retail investors to subscribe in book-built public issues by authorising SCSBs to block application money in the investor's bank account until allotment finalisation, withdrawal or issue failure, with defined roles and obligations for Self Certified Syndicate Banks, Stock Exchanges, Registrars to the Issue and Merchant Bankers for data upload, reconciliation, fund blocking/unblocking, transfer on allotment, recordkeeping and investor redressal.

Designated email ID requirement: merchant bankers must create exclusive regulatory email accounts and submit details to SEBI.
Merchant bankers must create an exclusive, non-personal designated e-mail ID for regulatory communication and communicate it to SEBI at [email protected] using the prescribed Excel format. The Excel file must specify the intermediary type and name in the file name and e-mail subject and contain: Name, Address, Category, RegistrationNo, Designated e-mail id, and Name of compliance officer.

Designated email ID for regulatory communication: exchanges and depositories must create exclusive IDs and notify SEBI.
Stock Exchanges and Depositories must create an exclusive, non-personal designated e-mail ID for regulatory communications and communicate it to SEBI at [email protected] using Annexure A. Annexure A requires an Excel file named to indicate intermediary type and name and to contain the intermediary's name, address, designated e-mail id and the name of the compliance officer; the file shall be e-mailed to [email protected].

Abridged annual report format standardisation mandates uniform disclosure and electronic mailing with printed copies on nominal fees available.
Mandate prescribing a uniform Abridged Schemewise Annual Report format and requiring abridged reports to be deliverable electronically with full Schemewise Annual Reports displayed on the mutual fund website, while printed copies remain available to unitholders for a nominal fee. The circular also updates periodic disclosures by adding a separate category for securitized debt instruments in half yearly portfolio disclosures and requires unaudited half yearly financials to be displayed on websites in the Regulations' prescribed format.

Annual systems audit requirement mandates exchanges to commission independent comprehensive audits and submit reports to the regulator.
Annual Systems Audit requires all stock exchanges to engage an independent reputed auditor annually to conduct a comprehensive audit covering Trading Systems, Clearing and Settlement Systems, Risk Management, Databases, Disaster Recovery Sites, Business Continuity Planning, Security, Capacity Management and Information Security, with the Systems Audit Report and Compliance Status to be placed before the Governing Board and communicated, with findings and comments, to the regulator.

Monthly reporting obligations: custodians must file revised annexed reports as Excel to SEBI email by the monthly deadline.
Custodians must submit monthly periodical information to SEBI in a revised standardized format using Annexures A-E as an Excel file named per the prescribed convention (report[custodian acronym][month][year].xls) and electronically file it to the specified SEBI email address by the monthly deadline; the circular and annexures are available on SEBI's website.

Designated email ID requirement: intermediaries must create exclusive regulatory email IDs and notify SEBI for receipt of digitally signed circulars.
SEBI mandates that all registered intermediaries establish an exclusive, non-personal designated e-mail ID for regulatory communication to receive digitally signed circulars, and to submit that e-mail ID to [email protected] in an Excel file per Annexure A containing name, address, category, registration number, designated e-mail ID and compliance officer name.

FII debt limit replacement period: five business days for substitution; unutilised limits withdrawn and reallocated promptly.
A replacement period of up to five business days is permitted for FIIs to substitute disposed or matured debt instruments; custodians must monitor and report unutilised limits upon expiry of that period. Any unutilised limit after five business days will be withdrawn and reallocated to the next waitlisted entity. Switches by sell off and replacement between government securities and corporate debt are not permitted due to separate individual limits.

Mandatory PAN requirement: specified public authorities' transactions exempted subject to documentary verification and intermediary compliance.
SEBI exempts transactions by the Central Government, State Government and court-appointed officials from the mandatory Permanent Account Number requirement, conditional on intermediaries collecting and verifying sufficient documentary evidence to substantiate exemption claims; stock exchanges and depositories must amend rules, notify members, publish the clarification and report implementation in monthly development reports.

Dematerialisation requirement enables shift from trade-for-trade to rolling settlement upon meeting demat holdings and certification conditions.
Shift from the Trade-for-Trade Segment to rolling settlement is allowed for companies with connectivity to both depositories if at least half of other-than-promoter holdings are dematerialised, certified by the RTA or, if no RTA exists, by a practising Company Secretary or Chartered Accountant; exchanges must ensure no other grounds to continue TFT trading and report actions in their Monthly/Quarterly Development Report.

Parking of Funds in short-term bank deposits: mandatory disclosure of margin term deposits in half-yearly portfolio statements.
The circular clarifies that the prior instruction does not apply to term deposits placed as margins for cash and derivatives trading, withdraws the earlier related circular, and mandates that all term deposits placed as margins be disclosed in half-yearly portfolio statements under a separate heading with bank name, amount, duration and percentage of NAV.

Short selling and securities lending allowed for mutual funds with mandated scheme disclosures and RBI-guided treatment of contracted government securities.
Mutual funds are permitted to undertake short selling and securities lending and borrowing after making additional disclosures and risk-factor entries in the Scheme Information Document as required by SEBI. The Seventh Schedule is amended to permit sale of a government security already contracted for purchase when done according to Reserve Bank of India guidelines, with the amendments effective from publication and a notified date set for implementation.

FII debt investment limits increased with first-come-first-served allocation and per-entity ceiling enforced.
SEBI increased cumulative caps for FII investment in Government Securities and Corporate Debt, allocating the enhanced limits on a first come first served basis subject to an entity ceiling of US $200 million per registered entity; allocation requests must be sent to the dedicated email channel specified in the prior circular and custodians must notify their FII clients.