Reporting requirements for trading system disruptions: exchanges must notify a standing committee, adopt remedial measures, and report to the regulator.
All instances of hanging, slowdown, breakdown or other problems in the computerised trading system must be reported to a Standing Committee which will examine each incident and report to the Governing Board/Council. The Board/Council shall deliberate and adopt remedial measures; stoppages beyond five minutes require explanation and reporting to the regulator and a public press release. Exchanges must amend bye laws, notify members and disseminate the provisions on their websites, and report implementation status to the regulator.

Mandatory PAN requirement for securities accounts: verification, limited-purpose accounts, exemptions, and account freezes until PAN produced.
The circular mandates the Permanent Account Number (PAN) for cash market trading and BO accounts, prescribes custodial verification and certification of PAN for specified institutional clients, allows temporary accommodations (including limited purpose BO accounts for certain NRIs/PIOs and acceptance of PAN allotment letters), exempts certain UN/multilateral entities and Sikkim residents subject to documentary proof, and directs depositories and exchanges to amend rules, communicate changes, and freeze accounts that fail to produce PAN within prescribed periods.

Position limits in derivatives: market-wide limits tied to free-float holdings and participant caps relative to open interest.
Re-introduction rules require stocks dropped from derivatives trading to satisfy full eligibility for three consecutive months before exchanges may reintroduce contracts; first-time introductions still need regulator approval. Market wide position limits for single stock derivatives are linked to free-float market capitalisation and set as a proportion of non-promoter holdings, applying to aggregate open positions across futures and options. Participant position limits for trading members, FIIs and mutual funds in index derivatives are set by a floor amount or a proportion of total market open interest, with existing hedging provisions retained.

Dematerialisation requirement for non-promoter holdings enables transfer from trade-for-trade to rolling settlement upon certification and reporting to regulator.
SEBI permits shifting securities with connectivity to both depositories from Trade-for-Trade to rolling settlement only after dematerialisation of non-promoter holdings is certified by the Registrar and Transfer Agent or, if none, by a practicing Company Secretary or Chartered Accountant, and where no other grounds exist for continuing trade-for-trade. Exchanges must report actions taken in the Monthly/Quarterly Development Report (Section II, item 13).

FII investment limits in Upper Tier II instruments set with separate cap, allocations, and approval-triggering threshold.
A separate capped framework governs FII investments in Upper Tier II instruments: investments are excluded from the general corporate debt ceiling but fall under a distinct aggregate limit allocated between 100% debt FIIs and general 70:30 FIIs/sub-accounts. A reserved headroom allows general 70:30 FIIs/sub-accounts to invest up to that threshold without approvals; beyond it, allocations follow the Board's established approval procedure. The Board may withdraw unused allocations to satisfy demand, and custodians must notify FII clients.

Dematerialisation requirement: exchanges may move securities from Trade-for-Trade to rolling settlement if demat holdings and no other grounds.
SEBI permits shifting listed securities from the Trade for Trade Segment to rolling settlement where issuers have depository connectivity and at least fifty percent of non promoter holdings are dematerialised, evidenced by a certificate from the RTA or a practicing Company Secretary/Chartered Accountant if no RTA exists; exchanges must ensure no other grounds for TFTS continuation and report actions in the Monthly/Quarterly Development Report, Section II item no. 13.

SEBI FII amendment regulations published: foreign institutional investors and custodians notified to review and implement the changes.
The circular notifies Foreign Institutional Investors and custodians that a Gazette Notification amending the FII regulations has been issued, is enclosed with the circular, and is available on the regulator's website for recipients to consult and take necessary action to align operations and compliance with the amended provisions.

Dematerialisation requirement for non promoter holdings must be met before shifting securities from trade for trade to rolling settlement.
SEBI directed exchanges to shift listed securities from Trade for Trade to rolling settlement where both depository connectivities exist and the dematerialisation of non promoter holdings meets the prescribed threshold, evidenced by a certificate from the Registrar and Share Transfer Agent or, if no RTA, from a practicing Company Secretary/Chartered Accountant; exchanges must confirm absence of other grounds for continued TFTS and report actions to SEBI in the Monthly/Quarterly Development Report.

Capital protection oriented scheme: portfolio based protection requires rating, disclosure, close ended structure and no pre maturity repurchases.
Capital protection oriented schemes must be designated and disclosed as oriented to capital protection but not guaranteeing returns, with protection arising from portfolio structure rather than external guarantees. The proposed portfolio must be rated by a SEBI registered credit rating agency, reviewed quarterly, with trustees and the AMC reporting on portfolio structure in half yearly and bi monthly reports respectively, the debt component carrying highest investment grade, schemes being close ended, and no repurchases before maturity.

Annual Information Return filing requirement mandates accurate singular AIR submission by each mutual fund and correction via supplementary report.
Mutual funds must file an Annual Information Return reporting specified transactions in electronic form with PANs; common filing defects include missing/invalid PANs, incomplete names and addresses, incorrect location and transaction codes, and misclassification of parties. A single AIR is required per mutual fund (not per scheme); mutual funds are directed to verify prior-year filings and submit a supplementary information report where necessary, under SEBI's regulatory mandate to protect investor interests and ensure accurate reporting.

Foreign investment limits for mutual funds: investments allowed subject to eligibility, disclosure, dedicated management and due diligence.
Mutual funds may invest in ADRs/GDRs, overseas equity, highly rated foreign debt, AAA government securities and units of overseas funds within an aggregate industry ceiling and individual fund sub-ceilings; overseas ETFs are permitted for qualified funds meeting specified eligibility and sub-limit conditions. Funds must appoint a dedicated Fund Manager, satisfy due diligence and disclosure requirements, report performance and exposures to trustees and SEBI, and apply prescribed expense treatment for foreign fund investments.

Appointment of custodian required for portfolio managers, with exemptions for small managers and advisers under amended regulations.
Amendments redefine "principal officer" as an employee designated by the portfolio manager and set eligibility by either a professional qualification in finance, law, accountancy or business management, or at least ten years' related securities-market experience. A new rule mandates that every portfolio manager appoint a custodian for securities managed or administered by it, with exemptions for managers below a prescribed assets-under-management threshold and for those performing purely advisory functions. The amendments come into force on publication in the Official Gazette.

Mutual fund reporting obligations updated to require revised MCR and ASR formats including unit capital and new scheme reporting.
Revised reporting requirements require all registered mutual funds to submit MCR and ASR in modified formats including unit capital data, with ASR aggregated across schemes. New-scheme details must be reported in the MCR for the month in which allotment occurs. The circular is issued under statutory powers to protect investors and regulate the securities market.

Mandatory PAN requirement clarifications: exemptions, limited-purpose BO accounts for NRIs, UN exemptions, and DP verification duties.
The circular requires production of the Permanent Account Number (PAN) for opening Beneficiary Owner (BO) accounts, allows SEBI-registered entities to open accounts without immediate PAN provided the PAN card is submitted within thirty days or accounts are frozen as "Suspended for Debit," permits PAN allotment letters in lieu of PAN cards pending production by a compliance date, creates restricted "limited purpose BO accounts" for NRIs/PIOs unable to obtain PAN with constrained credits and sale conditions, exempts tax-exempt U.N./multilateral entities and Sikkim residents subject to documentary proof, and directs DPs and depositories to verify documents, amend bylaws, collect proof of address, and report implementation.

Mandatory PAN requirement for cash market trades: trades allowed only after member collection, verification and exchange upload of PAN.
PAN must be collected from all existing and new cash market clients, verified with original documents, cross checked via the Income Tax Department web facility, and uploaded to the exchange as part of the unique client code; cash market trades shall be executed only for clients whose PAN details have been collected and uploaded.

FII regulatory amendment requires updated reporting for security receipt investments and prompt compliance by investors and custodians.
SEBI amended the regulatory framework for Foreign Institutional Investors by issuing a gazette notification and directed FIIs and custodians to implement the changes; a standardized reporting format for investments in security receipts will be circulated separately and the amendment text is published on SEBI's website for compliance and operational implementation.

Dematerialisation requirement enables shift to rolling settlement when depository connectivity and demat non promoter holdings are satisfied.
Companies with connectivity to both depositories may be shifted from Trade for Trade to rolling settlement only after meeting the dematerialisation requirement that at least half of non promoter holdings are in demat form, certified by the Registrar and Transfer Agent or, if none, by a practicing Company Secretary or Chartered Accountant, and provided there are no other grounds for continuation in Trade for Trade; exchanges must report actions taken in the monthly development report.

Trustees' certification of scheme novelty required; offer documents must state approval and non minor modification status.
Trustees must certify that an approved scheme is a new product of the mutual fund and not a minor modification of an existing scheme; this certification and the trustees' approval date must be disclosed in the offer document. The requirement supplements the existing trustee certification and applies to all offer documents pending clearance, excluding Fixed Maturity Plans and traditional close ended schemes but including close ended schemes convertible to open ended on maturity.

Portfolio managers must allow client challenges unless decisions are taken in good faith, excluding fraud or gross negligence.
Blanket contractual clauses barring client review of portfolio managers' investment decisions are improper; such clauses must be modified to state that decisions taken in good faith are final but remain reviewable on grounds of malafide conduct, fraud, conflict of interest, or gross negligence.

Intraday VaR margin updates required to align cash market risk management and protect investors.
The circular mandates updating VaR margin rates intra-day in the cash market at multiple points using contemporaneous prices, replacing the end-of-day application to next-day positions, to align risk management with the derivative market and enhance investor protection. Stock exchanges must implement the methodology by prescribed dates, amend bye-laws, notify members, disseminate the change, and report implementation status to the regulator; trading is not to be permitted unless the exchange can apply the methodology.