Settlement rescheduling allows exchanges to merge multiple settlement cycles into a single day when bank holidays disrupt settlement.
When scheduled bank holidays make settlement days fewer than trading days, exchanges may merge settlements of multiple trading days into one settlement day and allot a single settlement number if a calendar was drawn in advance; unscheduled settlement holidays may preclude last minute clubbing and prior SEBI guidance will apply. Exchanges may adopt appropriate risk containment measures and must draw up settlement schedules accordingly.

Director transaction disclosure: quarterly filings to trustees; mutual funds may invest in venture capital units within NAV limits.
Each director of the Asset Management Company must file details of his securities dealings with trustees quarterly; specified filing and communication periods are shortened; half yearly financial results must follow a substituted Twelfth Schedule in a prescribed tabular format and be printed in at least 7 point Times Roman. Mutual fund schemes may invest, within existing NAV percentage limits for open and close ended schemes, in listed or unlisted securities or units of venture capital funds or shares of venture capital companies. Mutual funds must pay applicable volatility margins on equity sales except where early pay in is effected.

Validity period of company objection memos: clause 97 prevails over clause 100, exchanges must notify members accordingly.
Where there is a conflict on the validity period of company objection memos under the Uniform Norms for Good/Bad Deliveries, the provisions of clause 97 shall prevail over clause 100; stock exchanges are instructed to inform their members of this clarification.

Eligibility for trading member: subsidiaries may join derivatives segments subject to eligibility criteria and specified compliance conditions.
Permission is granted for subsidiaries of stock exchanges to become trading and/or clearing members in the derivatives segment provided they satisfy the exchanges' eligibility criteria and the applicable regulatory requirements governing brokers and sub-brokers, subject to two express conditions: adherence to prescribed risk containment measures and a prohibition on proprietary trading.

Compulsory dematerialisation for rolling settlement required; exchanges must ensure depository connectivity and submit compliance reports.
Compulsory dematerialisation requires securities not already in rolling settlement to be brought within the rolling settlement framework by the implementation date; stock exchanges must ensure affected issuers establish connectivity with both depositories by the specified deadline and submit a compliance report to the regulator by the prescribed reporting date, imposing supervisory duties on exchanges and operational connectivity obligations on issuers to enable dematerialised trading and settlement.

Client coding for mutual fund transactions requires use of SEBI registration numbers as primary client codes provided to brokers and custodians.
Mutual funds must adopt standardized client codes for securities transactions by using their SEBI registration number as the primary client code element, followed by an internal identifier for scheme or plan; these codes must be communicated to stockbrokers and custodians and a list provided to the regulator.

Rolling settlement on T+5 required; exchanges must implement T+5 now while shorter durations are deferred.
The Securities and Exchange Board of India directs stock exchanges to introduce rolling settlement initially on a T+5 basis, following the Risk Management sub group recommendation; proposals for shorter settlement durations are declined for now and will be considered later.

Reporting requirement change: mutual funds need not file Monthly Statistical Reports but must continue Monthly Cumulative Reports by monthly deadline.
SEBI withdraws the requirement for mutual funds to submit Monthly Statistical Reports in hard or soft form; however, the obligation to submit Monthly Cumulative Reports by the prescribed monthly deadline remains in force for all registered mutual funds.

Unique client code requirement: brokers must collect PAN or alternate IDs, report quarterly and retain client mappings.
Brokers must collect, verify and retain the Permanent Account Number (PAN) for all clients or, where PAN is unavailable, prescribed alternative identity documents; furnish client particulars to stock exchanges/clearing corporations with quarterly updates; maintain and preserve for seven years a mapping of trading-order client IDs to the unique client IDs with KYC particulars; and exchanges must keep confidential client databases, retain historical quarterly submissions for seven years, include confidentiality clauses in member agreements and ensure broker compliance.

Qualified Institutional Buyers expansion permits additional investors to participate in book-built public issues under revised disclosure and lock-in rules.
Qualified Institutional Buyers are expanded to include SEBI-registered Foreign Venture Capital Investors and State Industrial Development Corporations, permitting their participation in book-built issues. Pre-issue shares held by Venture Capital Funds and registered Foreign Venture Capital Investors are exempt from the general lock-in, subject to SEBI venture capital regulations. Post-issue monitoring reports have specified three-day and final-report deadlines. Public offer thresholds are adjusted to permit net offers of at least 10% or 25% as applicable, and a formal procedure allows certain unlisted transferee companies to seek listing without an initial public offer following court-sanctioned schemes, with prescribed conditions, lock-in treatments, listing timelines and advertisement content. Research report circulation is restricted to offer-document information only.

Volatility margins required for outstanding sell positions; foreign institutional investors must pay end-of-day margins to brokers.
SEBI requires payment of volatility margins by institutional investors on their net outstanding sale positions at end of day; no class of investor is exempt and exchanges will announce applicable rates. Brokers must collect margins where client settlement margins exceed the prescribed threshold, and custodians are to inform their FII clients of the obligation.

Disclosure standards: mutual funds must adopt SEBI's standard observations and file revised offer documents with due diligence.
Mutual funds must incorporate SEBI's standard observations published on its website into offer documents and abridged offer documents; file a revised offer document and memorandum with a fresh due diligence certificate for SEBI's records and reproduce that certificate in the offer document; and comply with prior circular requirements. While filing revisions, funds must highlight page numbers where each observation appears and state the date of the observations as on the website; the same observations may be used for new scheme filings to expedite processing.

Index based market wide circuit breaker triggers staged trading halts, requires real time index data and scrip price band limits.
An index based market wide circuit breaker mandates coordinated staged trading halts across equity and equity derivative markets triggered by movement in either the BSE Sensex or NSE S&P CNX Nifty, with earlier breaches determining activation. Absolute point equivalents for thresholds are recalculated quarterly from the quarter end closing level and rounded to index specific increments. Exchanges must provide and access real time Sensex/Nifty data free. Individual scrip wise price bands apply in compulsory rolling settlement except for scrips linked to derivatives, while existing bands remain for other scrips.

Annual fees transmission procedure requires exchanges to collect sub-broker fees and forward consolidated drafts fortnightly.
Exchanges must collect sub-broker annual fees and forward consolidated pay orders/drafts to SEBI fortnightly, with a hard copy and an Excel CSV soft copy listing: sub-broker name, SEBI registration number, recommending broker, financial year, principal amount, interest if any, and total amount, using the prescribed format to ensure prompt crediting and reconciliation.

Withdrawal of securities lending restriction restores full operation of the scheme after transition to rolling settlement.
The circular withdraws prior restrictions on the Securities Lending Scheme, 1997 that had confined applicability to ALBM and BLESS transactions and required return of securities borrowed otherwise; the withdrawal is effective with the commencement of rolling settlement and follows the discontinuation of deferral products, thereby restoring broader applicability of the Scheme.

Restriction on short sales lifted; sellers no longer required to back sales with prior purchases effective from rolling settlement start.
The circular withdraws the prior requirement that all sale transactions be backed by delivery or be preceded by an equivalent purchase in the same client's name. The restriction on short sales is rescinded effective July 02, 2001, coincident with the introduction of rolling settlement and the removal of deferral products such as ALBM, BLESS, MCFS and CNS.

Value at Risk margin: rolling settlement mandates VaR based margins, additional volatility surcharge, and gross margining across cash market.
Introduction of a Value At Risk (VaR) based margin framework for securities in the compulsory rolling settlement: exchanges must compute scrip wise VaR and index based VaR and apply the higher as margin (multiplier not less than 1.75, capped at 100%), collect VaR margins on T+1 alongside mark to market margins, apply an additional 12% surcharge for extreme events, disseminate daily VaR data, and maintain existing capital and exposure norms.

Deferral products removal triggers compulsory liquidation and adoption of uniform settlement cycle pending rolling settlement expansion.
All deferral products are withdrawn except under a transitional mechanism requiring phased compulsory liquidation of outstanding and subsequently taken deferred positions, with no new deferred positions permitted after the secondary cutoff; exchanges must monitor member positions and publish phased liquidation plans. Expansion of rolling settlement will bring additional scrips into compulsory rolling settlement, and securities not yet in compulsory rolling settlement will trade on a uniform settlement cycle across exchanges during the interim period.

Adjustment of corporate actions for stock options preserves position value across cum and ex dates by modifying strike, lot, or position.
Adjustments to exchange traded stock option contracts must preserve the value of the position across cum and ex dates by modifying strike price, position size and/or market lot/multiplier as needed; adjustments occur on the last cum trading day and apply to all open, exercised and assigned positions. Specific formulas govern bonus, split, consolidation and rights issue adjustments; fractional results are managed by rounding strike and lot and reconciling any residual value difference through group determined adjustment so as to avoid forced position closure. Ordinary small dividends are not adjusted; extraordinary dividends are adjusted.

Risk containment for stock options: portfolio based margining and exposure limits to control member risk in trading.
Risk containment for exchange traded stock options requires SEBI approval, premium settled American style contracts with specified size, maturity and strikes, and a portfolio based margining regime where Initial Margin equals the Worst Scenario Loss computed from multi scenario valuations; a Short Option Minimum Margin applies if that loss is lower, Net Option Value adjusts liquid net worth, premiums are cash settled on T+1, and exposure and market wide position limits and eligibility criteria for underlying stocks are prescribed.