Cross-margining facility for offsetting index futures expands margin efficiency, subject to correlation and constituent overlap requirements.
Introduction of a cross-margining facility permitting margin benefits for offsetting futures positions in highly co-related equity indices, subject to correlation, constituent overlap and weightage eligibility. Clearing Corporations must verify eligibility monthly and on constituent changes and apply to SEBI with supporting data. An initial spread margin is levied on eligible spreads, with cross-margin computed in real time at client level and passed through trading/clearing members. Exchanges and clearing corporations must update systems, rules, legal agreements for margin utilisation, notify market participants, and report implementation status to the regulator.

UPI with ASBA: Phase II implementation extended and T+6 operational timelines mandated for intermediaries and banks.
Extension of Phase II implementation of Unified Payments Interface (UPI) with ASBA is directed until March 31, 2020, retaining the T+6 listing environment and prescribing detailed operational timelines. Retail applications via intermediaries must include UPI IDs; stock exchanges, sponsor banks, issuer banks, SCSBs, registrars, merchant bankers and NPCI must perform API-based bid validation, mandate initiation, funds blocking and multilayered reconciliation. Sponsor banks and merchant bankers have specified cut-offs and daily reporting obligations to consolidate data and share it with SEBI; liability for failed transactions rests with the participant where the transaction lifecycle halts.

Segregated portfolio creation for unrated issuer defaults permitted, subject to SID disclosures and AMC discretion.
Segregated portfolios may be created for unrated debt or money market instruments of an issuer without outstanding rated instruments only upon actual default of interest or principal; AMCs may do so at their discretion if the SID contains enabling provisions and adequate disclosures, must notify the industry association immediately upon default, and otherwise follow the existing circular's terms.

Reporting changes in investment terms must be sent immediately to valuation and SEBI-registered credit rating agencies with reasons.
Changes to the terms of an investment, including extension of the maturity of a money market or debt security, must be reported to valuation agencies and SEBI-registered credit rating agencies immediately, accompanied by reasons for such changes; this reporting obligation is effective from the date of the circular.

Enhanced due diligence for dematerialisation requires validation of demat requests against issuer-provided static shareholder data and identity documents.
Issuers or their RTAs must provide a static shareholder database of physical-share holders to Depositories, which shall validate dematerialisation requests received after the cutoff by matching static-data names against demat account names and flag mismatches. Flagged cases require submission of prescribed identity documents (Passport, marriage certificate, gazette name-change notification, or Aadhar); complete mismatches require the applicant to establish title with the issuer/RTA. Depositories must amend byelaws, notify participants and report implementation monthly; Stock Exchanges must notify listed entities and publish the circular.

Aadhaar e-KYC authentication enabled for securities-market KYC, subject to UIDAI/Regulator approval and privacy safeguards.
Aadhaar-based e-KYC authentication for resident investors is permitted for securities-market entities subject to Central Government notification under PMLA, based on recommendations from the Regulator and UIDAI. KUAs and sub-KUAs must follow an online or assisted e KYC process involving investor consent, OTP/biometric verification, encrypted transfer of UIDAI e KYC data, prohibition on storing Aadhaar numbers, maintenance of auditable logs, controls for data sharing, and compliance with Aadhaar Act/Regulations, with SEBI and UIDAI oversight and potential withdrawal of permission for non compliance.

Operational Guidelines for Foreign Portfolio Investors guide transition under SEBI regulations, consolidating prior circulars and guidance.
SEBI issued Operational Guidelines under regulation 44 to implement the SEBI (Foreign Portfolio Investors) Regulations, 2019 and to manage the transition from the prior FPI regime. The Guidelines set out procedural directions for FPIs, custodians, DDPs, depositories and recognized exchanges and clearing corporations, withdraw earlier circulars, FAQs and guidance on the subject, and require custodians to inform their FPI clients; the circular is issued under SEBI's statutory powers and the Guidelines are published on SEBI's website.

Governance norms for credit rating agencies: prohibit MD/CEO on rating committees, require CRO reporting and stronger board independence.
CRAs must separate management from rating decisions: MD/CEO shall not be members of rating committees; rating committees report to a Chief Ratings Officer (CRO), who reports to the board's Ratings Sub-Committee. Boards must meet specified independent director composition and constitute a Ratings Sub-Committee and a Nomination and Remuneration Committee chaired by an independent director. CRAs must record issuer meeting minutes in rating committee notes and annually meet rated entities' audit committees to discuss related party transactions, internal financial controls, and material disclosures affecting listed NCDs.

Disclosure of divergence in asset classification requires listed banks to promptly report regulator assessed NPA divergences upon receipt.
Listed banks must promptly disclose to the stock exchange divergences in asset classification and provisioning identified in the regulator's Final Risk Assessment Report when those divergences exceed prescribed materiality thresholds; disclosures must follow the regulator's prescribed format and be made immediately upon receipt of the report rather than in the annual financial statements.

Master Circular for Depositories: consolidates SEBI depository rules, KYC, BSDA, DIS, cybersecurity and AI/ML reporting obligations.
Compilation of SEBI circulars to depositories up to March 31, 2019 creating a single Master Circular that preserves the primacy of underlying circulars. It prescribes KYC/PAN as primary identifier with Aadhaar e KYC options; simplifies account opening (SARAL AOF), sets rules for HUFs, minors and third party correspondence; standardizes DIS processing and transmission timelines; establishes BSDA terms and CAS generation; mandates NDU recording; and requires comprehensive cyber security, AI/ML reporting, capacity planning and committee governance for depositories and DPs.

Regulatory consolidation: master circular compiles SEBI circulars for stock exchanges and clearing corporations, clarifying precedence and scope.
Master Circular consolidates SEBI circulars and communications up to March 31, 2019 for recognized Stock Exchanges and Clearing Corporations, incorporating Market Regulation Department guidance and relevant provisions from other SEBI departments. It comes into force on issue, updates references to repealed or amended statutes, and provides a single reference across trading, settlement, risk management, derivatives and related operational chapters. Where inconsistency exists, the original applicable circular prevails; the document also supersedes the prior master circular and is published on the regulator's website.

Commercial Paper listing disclosures require issuers and exchanges to file application-level and continuous reporting, monitoring and compliance.
A regulatory framework requires issuers to submit specified Annexure I disclosures with listing applications for Commercial Paper, which exchanges must publish upon approval, and mandates ongoing Annexure II disclosures during the CP tenure. Annexure I covers issuer, governance, top holders, auditor changes, past defaults, material litigation, detailed borrowings, tranche particulars, end-use and credit support; Annexure II requires periodic financial reporting, 24 hour disclosure of material events including defaults and credit rating revisions, ALM statements for NBFCs/HFCs, and quarterly CEO/CFO certification on use of proceeds and compliance.

Resignation of statutory auditors: timing and disclosure duties require issuance of pending review/audit reports and immediate Audit Committee reporting.
Resignation of statutory auditors from listed entities triggers timing-based requirements to issue limited review or audit reports before resigning, mandates inclusion of these conditions in engagement terms, immediate reporting of concerns to the Audit Committee, and provision of a detailed resignation disclosure in the Annexure A format; the Audit Committee must deliberate, communicate views to management and disclose those views to stock exchanges within twenty-four hours of its meeting, and entities must continue cooperation until required reports are filed.

Anti Money Laundering compliance: intermediaries must perform risk based client due diligence and report suspicious transactions promptly.
Intermediaries must adopt written AML/CFT procedures under the PMLA: implement risk sensitive client acceptance and CDD (including beneficial ownership and PEP checks), transaction monitoring, record keeping enabling reconstruction of transactions, retention of records for prescribed periods, internal escalation to designated officers, and timely reporting of suspicious and cash transactions to FIU IND; reliance on third parties for CDD is allowed subject to Rule 9 conditions but the intermediary remains ultimately responsible.

Cyber Security & Cyber Resilience framework for KYC Registration Agencies mandates board approved policies, CISO, controls, VAPT and quarterly reporting.
KRAs must implement a Board approved Cyber Security and Cyber Resilience policy by January 1, 2020, appoint a CISO, form a Technology Committee for quarterly reviews, and follow an identify protect detect respond recover lifecycle. Required measures include least privilege access and two factor authentication, encrypted logging and data, baseline hardening, network security devices, VAPT including annual penetration testing and pre commissioning testing, continuous monitoring and alerting, incident forensic analysis and drills, quarterly reporting of cyber incidents to SEBI, and annual independent audits with Board comments.

Cyber security reporting for Qualified Registrars to an Issue/Share Transfer Agents required quarterly via email with specified timelines.
Qualified Registrars to an Issue / Share Transfer Agents must submit standardized quarterly soft-copy reports by email detailing cyber-attacks, threats, vulnerabilities and mitigation measures as per the prescribed Annexure format. For the quarter ended September 30, 2019 reports were due by November 30, 2019; from the quarter ending December 31, 2019 the deadline is 15 days after quarter end. The Annexure includes an incident reporting form and Annexure I capturing technical, operational and remedial details of breaches or a NIL report where no incident occurred.

Cyber security reporting for stock brokers and depository participants: quarterly incident reports, specified auditors, and mandated audit periodicity.
SEBI requires stock brokers and depository participants to submit quarterly reports on cyber-attacks, threats, vulnerabilities and mitigation measures in a prescribed format within specified timelines; specifies authorised auditor qualifications (CERT-IN empanelled, DISA (ICAI), CISA, CISM, CISSP) for cybersecurity audits; sets audit periodicity as annual for depository participants, annual for Type I and II brokers and half-yearly for Type III brokers; and directs exchanges and depositories to amend rules, notify members, and report implementation to SEBI.

Depository receipts issuance framework establishes eligibility, jurisdictional and compliance requirements for issuing and listing DRs on specified international exchanges.
The circular establishes a framework for issuance of Depository Receipts by listed Indian companies, prescribing eligibility restrictions for issuers and transferring holders, limiting issuance to dematerialized equity or debt that rank pari passu, requiring aggregate foreign holdings (including DRs) to remain within FEMA and SEBI limits while maintaining minimum public shareholding, and confining issuance and listing to notified permissible jurisdictions and specified international exchanges that meet high listing standards.

Restrictions on unlisted debt investments tighten mutual funds' exposure, mandating listed instruments, limits, and disclosure obligations.
Revision tightens mutual fund investments in debt and money market instruments: unlisted debt is largely prohibited except defined exceptions, unlisted NCDs allowed only within capped percentages and subject to simple-structure, rating, security and monthly coupon requirements; timelines phase down exposure with grandfathering of existing holdings. Unrated non-government instruments face a net-assets exposure ceiling and board approvals. Structured obligations and credit-enhanced instruments have specified portfolio and group limits, equity-backed cover requirements, and mandatory distinctive disclosure. AMCs must maintain internal credit assessment systems with early warning mechanisms.

Position limits in interest rate derivatives updated to recalibrate participant categories and maturity bucket caps effective immediately.
Revises position limits for cash settled Interest Rate Derivatives, equating banks and Primary Dealers acting as clients with Trading Members and aligning institutional FPIs (excluding individuals, family offices and companies) with Trading Members while non institutional Category II FPIs follow client limits. Specifies higher ceilings for the 8-11 year maturity bucket than for the 4-8 and 11-15 year buckets, with separate caps for Trading Members and large institutional participants versus non institutional clients and scheme level mutual funds. Effective immediately under SEBI's regulatory powers.