Cybersecurity and Cyber Resilience Framework for SEBI entities mandates SOC monitoring, VAPT, audits, CCI and incident reporting timelines.
The CSCRF is a standards based, graded cybersecurity and resiliency regime for SEBI Regulated Entities requiring category specific controls: governance, SOC based continuous monitoring (own/group/third party or Market SOC), mandatory ISO 27001 for MIIs and Qualified REs, structured VAPT and cyber audits by CERT In empanelled auditors with standard formats and timelines, Cyber Capability Index assessments, and mandatory incident reporting (6 hour/24 hour thresholds), RCA, forensic investigation and closure procedures-all to be implemented per the prescribed glide path and reported to the designated authorities.

Borrowing restrictions for Category I and II AIFs permit limited short-term drawdown financing with investor-cost allocation and disclosure.
SEBI permits Category I and II AIFs to borrow only for temporary operational needs and, additionally, to cover shortfalls in investor drawdowns for imminent investments as an emergency measure, subject to disclosure in the PPM, exhaustion of efforts to obtain the drawdown, borrowing caps tied to the investment amount/investable funds/other undrawn commitments (whichever is lower), charging borrowing costs solely to defaulting investor(s), prohibition on using this flexibility to vary drawdown timelines, periodic investor disclosure of terms and repayments, and a thirty-day cooling-off between permissible borrowings measured from repayment.

Migration of Venture Capital Funds to AIF Regulations enables time bound transfer with tenure treatment and a one time liquidation extension.
SEBI provides a time bound procedure for VCFs to migrate to AIF Regulations as Migrated Venture Capital Funds, requiring submission of the original VCF registration certificate and prescribed information; migration is available until July 19, 2025, with tenure of schemes preserved as per PPM or fixed with 75% investor approval where no definite tenure exists, and a one time additional liquidation period available for schemes whose liquidation period has expired, subject to absence of pending investor complaints and compliance with applicable AIF provisions and reporting requirements detailed in Annexures I and II.

SEBI issues an updated master circular consolidating registration, supervision, client protections, tech resilience and QSB obligations for stock brokers.
The Master Circular consolidates SEBI instructions to stock brokers up to August 9, 2024, superseding the May 22, 2024 circular, rescinding specified prior circulars insofar as they relate to stock brokers while preserving legal effects of past actions, and is issued under Section 11(1) of the SEBI Act. It prescribes unified rules on registration (including single registration), risk-based supervision and inspections, internal and system audit norms, client-facing requirements (KYC, Unique Client Code, running account settlement, prohibition of cash), technology and cyber-resilience obligations, an Early Warning Mechanism for diversion of client securities, and an enhanced regime for designation and obligations of Qualified Stock Brokers.

InvIT unitholders: nomination restriction waived if appointment right arises under debenture trustee regulation clause (e) proviso.
Paragraph 22.3.1(b) is amended to add a proviso that the restriction barring an entity from nominating a Unitholder Nominee Director-when that entity also has nomination rights as a shareholder or lender to the Investment Manager, the InvIT, its HoldCo(s) or SPVs-shall not apply if the right to appoint a nominee director is available under clause (e) of sub regulation (1) of regulation 15 of the SEBI (Debenture Trustees) Regulations, 1993.

Board nomination rights: proviso allows unitholders to nominate despite lender nomination rights under debenture trustees clause.
The Master Circular's restriction barring a unitholder from nominating a Unitholder Nominee Director when the same entity (or its associate) has director nomination rights as shareholder or lender is amended by a proviso: that restriction will not apply where the right to appoint a nominee director is available in terms of clause (e) of sub regulation (1) of regulation 15 of the Debenture Trustees regulation, permitting such unitholder nomination in those specified cases.

Yield to Call valuation: Mutual funds must value AT 1 bonds on YTC basis under regulatory guidance.
Mutual funds must value Additional Tier 1 bonds on a Yield to Call basis, consistent with NFRA's view that market practice and Ind AS 113 market based measurement support YTC. This valuation mandate is confined to valuation only; deemed maturity for other regulatory purposes and the capture of liquidity risk for perpetual bonds remains governed by clause 9.4.2 of the Master Circular.

Market abuse deterrence mechanism required for asset managers to detect alerts, process investigations and report regulatory actions.
AMCs must implement an institutional mechanism to identify and deter market abuse, including front running and fraudulent transactions, combining alert based surveillance, internal controls and escalation processes. Accountability lies with the CEO/MD (or equivalent) and Chief Compliance Officer. Procedures must provide for timely alert generation and processing, review of recorded communications, access logs and CCTV, board approved SOPs, personnel actions on suspicious activity, an escalation route to board and trustees, a documented whistle blower policy and periodic system reviews. Exchanges and depositories shall enable data sharing; AMCs must report examined alerts and actions in the Compliance Test Report and Half yearly Trustee Report.

Exemption for university funds from additional FPI disclosure obligations when qualifying AUM allocation and nonprofit status criteria are met.
SEBI exempts University Funds and University related Endowments eligible as Category I FPIs from certain additional disclosure requirements provided they maintain Indian equity AUM below 25% of global AUM, have global AUM above the prescribed threshold, and submit tax filings evidencing non-profit status; eligible jurisdictions will be specified by SEBI via the Standard Operating Procedure, and the amendment takes effect immediately.

Regulatory jurisdiction: ESG rating activities in the IFSC are subject to local regulator oversight, complaints and enforcement mechanisms.
SEBI has added the IFSC regulator to the list of authorities under the ERP framework so that ESG ratings undertaken by SEBI-registered ERPs under IFSC guidelines are governed by the IFSC regulatory regime. The IFSC regulator will handle issues arising from ERPs' IFSC activities, including complaints, enforcement actions and provision of information to third parties, and the circular is effective immediately.

IFSCA jurisdiction for CRA rating activities established, assigning complaints, enforcement and information duties to IFSCA.
Enables SEBI-registered Credit Rating Agencies to rate financial instruments in the IFSC-GIFT City under the regulatory framework of IFSCA; ratings under IFSCA guidelines are subject to IFSCA jurisdiction. IFSCA will address issues arising from CRA activities in the IFSC using powers under its Act, and will handle complaints, enforcement actions and provision of information to third parties and judicial or statutory bodies. The circular is effective immediately and issued under SEBI's enabling powers to protect investor interests and regulate the securities market.

Recognition of RAASB and IAASB enables BSE to administer RA/IA registration and impose administrative fees while ensuring fee neutrality.
BSE Limited is recognised as RAASB and IAASB for five years from July 25, 2024, and must adopt bye-laws, SOPs and guidance to supervise Research Analysts and Investment Advisers. Applicants for registration or renewal will pay administrative fees specified by RAASB/IAASB; SEBI's amended RA fee schedule takes effect from July 25, 2024, and total fees payable to SEBI and RAASB/IAASB will remain fee-neutral. Applications filed before July 25, 2024 will follow the previous SEBI fee structure, and other terms of SEBI's May 2, 2024 circular continue to apply.

Surveillance of securities market: exchanges and depositories implement PAN-based freezes and automated disclosures to curb insider trading.
Master Circular consolidates SEBI surveillance directives requiring initial listing trades in a Trade for Trade segment, mandating intermediaries to implement internal conduct controls against circulation of unauthenticated market news, standardising PIT disclosure formats and reporting of Code of Conduct violations, and implementing system-driven disclosures and automated dissemination. It establishes a portal-based framework where Designated Depositories auto-populate DP PAN/demat details, listed companies confirm trading-window dates at least T-2 days, and depositories/exchanges freeze PAN at ISIN level to restrict on- and off-market transactions during trading-window closures with time-bound procedures for additions and exemptions.

Dissolution period for AIF schemes requires filing an information memorandum and merchant banker due diligence, with investor approval.
SEBI permits AIF schemes to opt for a dissolution period for unliquidated investments, requiring submission of an information memorandum to SEBI via a merchant banker before the expiry of the liquidation or additional liquidation period; the merchant banker must furnish a Due Diligence Certificate confirming compliance with Regulation 29 and adequacy of disclosures. Schemes seeking an additional liquidation period must submit prescribed information for SEBI consideration. In specie distributions (other than mandatory distributions) require approval of at least seventy five percent of investors by value. Managers, trustees/sponsors and key personnel are responsible for compliance and inclusion of these matters in the Compliance Test Report.

Exposure cap for sponsor group securities: passive ETFs and index funds follow index weight, subject to cap and rebalancing rules.
Equity oriented ETFs and Index Funds tracking widely tracked, non bespoke indices may invest in group company securities in accordance with index weight subject to an overall exposure cap. Eligible indices are determined by an AUM threshold and listed semi annually by AMFI after approval. Passive schemes tracking indices outside the eligible list must rebalance within the prescribed timeframe; the AMC's Investment Committee may extend that period for limited time upon written justification. Failure to rebalance within mandated timelines bars new scheme launches and prohibits levy of exit load on exiting investors until compliance.

Filing deadline extension to October 31 for brokers and depository participants, requiring exchanges to notify and amend rules.
SEBI has extended the compliance timeline so that failure to furnish annual audited accounts by stock brokers and net worth certificates by depository participants (for year ending March 31) will be judged against an October 31 deadline; the change is effective immediately and exchanges/depositories must notify members, amend bye laws and report implementation in Monthly Development Reports.

Brokers' institutional mechanism for fraud prevention mandated with staggered risk-based implementation across broker categories and ISF standards.
Requires stock brokers to implement an institutional mechanism for prevention and detection of fraud or market abuse, comprising systems for surveillance and internal controls, broker and employee obligations, escalation and reporting, and a Whistle Blower Policy; the ISF, with SEBI, will frame implementation standards; stock exchanges must notify brokers, amend rules, issue applicability notices, mandate adoption of ISF standards, and report implementation status to SEBI.

Timelines for CRA rating communication and appeals set prompt communication, appeal windows, and press release dissemination requirements.
Specific timelines require CRAs to communicate ratings to issuers promptly after rating committee meetings, allow issuers a short window to request review or appeal following periodic surveillance, and mandate dissemination of press releases and intimation to stock exchanges or debenture trustees within a prescribed period. CRAs must maintain an archive of all disclosures for ten years, while certain specified disclosures are published for shorter prescribed periods; records must be retained for ten years and issuer specific press releases/rating rationales made available on CRA websites.

Reduction in denomination of debt securities expands retail access; permits smaller private placements with prescribed safeguards.
Issuers may offer debt securities and non-convertible redeemable preference shares on private placement at a face value of Rs. Ten Thousand if they appoint at least one Merchant Banker, issue interest/dividend-bearing instruments with fixed maturity and no structured obligations, and, where applicable, employ permitted credit enhancements. Credit Rating Agencies must verify that support is unconditional, irrevocable and legally enforceable and that the support provider has a lower probability of default than the issuer. Trading lots shall equal face value and the amendments apply to private placement issues proposed to be listed from the circular's issuance.

True to Label charges require market infrastructure institutions to ensure uniform, transparent pass-through of client charges.
MIIs must ensure charges recovered from end clients are True to Label, meaning the exact amount levied on the client is received by the MII. Slab-wise, volume-dependent charge structures that enable members to collect aggregated sums exceeding the MII's receivable must be replaced with a uniform, equal charge structure for all members. MIIs are directed to redesign charge structures, implement requisite infrastructure and by-law amendments, notify and publish provisions to members, and report implementation status to the regulator.