Rounding off NAVs: prescribed decimal precision for NAV reporting, distinguishing debt/index and equity/balanced schemes.
Mutual funds must round Net Asset Values to four decimal places for index funds and debt oriented schemes, and to two decimal places for equity oriented and balanced schemes, with equity and balanced schemes permitted to use greater precision if desired; these rounding conventions apply to existing and new schemes and must be implemented by the prescribed deadline under the mutual funds regulations cited in the circular.

Compensation for NAV variation required where recording errors cause price differences; scheme or asset manager must make good losses.
The amendment mandates that trust deeds require trustees to meet at least once every two calendar months (minimum six meetings a year) and lowers the prescribed expense figure. It also establishes that where NAV discrepancies arise from non recording of transactions beyond the prescribed threshold, affected investors or the scheme must be compensated: schemes pay when investors received disadvantageous pricing; asset management companies pay to the scheme where investors were given advantageous pricing and may recover such amounts from investors.

Submission of New Scheme Report required in revised format, triggering mandatory timeline and comprehensive scheme disclosures.
SEBI mandates submission of a revised New Scheme Report format within ten working days from allotment under Regulations 58(1) and 77. The report must include scheme identification, subscription and allotment details, listing and refund dispatch information, initial issue expense treatment, unit holding pattern and large unitholder particulars, statewise geographical dispersion, top ten agents/distributors by commission, and the Compliance Officer's signature.

Uniform calculation of sale and repurchase price mandates loads applied to NAV and standard rounding for NAV disclosure.
Loads must be charged as a percentage of Net Asset Value and applied to NAV to calculate transaction prices: Sale Price = Applicable NAV x (1 + Sales Load) and Repurchase Price = Applicable NAV x (1 - Exit Load). Offer documents must disclose this method and illustrate by example. NAV rounding is standardized to four decimal places for liquid/money market schemes and two decimal places for other schemes, and these disclosures must be included in new and updated offer documents.

Transaction reporting obligations expanded to include buybacks, open offers and debt trades with revised reporting and confidentiality measures.
The circular mandates revised electronic reporting (Version 2.0) for FII transactions, expanding daily reporting to include buybacks, open offers, write-offs and, imminently, debt transactions while custodians must continue legacy debt reporting until further notice; the revised guidelines supersede earlier instructions. It also requires exchanges to reinforce employee confidentiality obligations and directs FIIs and custodians to adopt safeguards to prevent leakage of sensitive trade information.

Depository receipt account segregation required: custodians and depositories must report monthly holdings and notify investors.
Mandates separate Depository Receipts (DRs) accounts for shares released on conversion of ADRs/GDRs; depositories must credit converted shares only to these accounts, require beneficiaries to transfer existing converted holdings into them by the prescribed deadline, and furnish domestic custodians monthly statements detailing opening total, shares credited, shares debited/transferred out, and month-end balance.

Electronic filing requirement mandates listed companies to submit specified corporate reports online through EDIFAR, enhancing public disclosure.
SEBI, with NIC, requires specified listed companies to file designated documents online on the NIC-hosted EDIFAR site in SEBI-prescribed format and time. Under substituted Clause 51(1), companies must upload the full annual report (including balance sheet, profit and loss account, directors' and auditors' reports), cash flow statements, half-yearly and quarterly financial statements, corporate governance report, shareholding pattern, statements of regulatory action and any other information SEBI specifies. This EDIFAR requirement is additional to other listing agreement filing obligations.

Nomination facility for mutual fund units extended with prescribed eligibility rules, cancellation procedure, and transfer consequences.
A new nomination facility is introduced for mutual fund unit holders. The asset management company must allow individual unit holders, singly or jointly, to nominate a person in whom the units will vest on death, and joint holders may nominate a person to receive all rights in the units on the death of all joint holders. The Fourth Schedule prescribes the nomination or cancellation form and instructions, including eligibility restrictions on who may nominate and who may be a nominee, provision for nomination of a minor through a guardian, rescission on transfer of units, and cancellation only by the original nominators.

Accounting standards compliance relief for banks made temporary, with mandatory adherence required thereafter.
Compliance with Accounting Standards specified in SEBI's August 31, 2001 circular is temporarily optional for banks for the financial year ending March 31, 2002 with respect to AS-17 (Segment Reporting), AS-18 (Related Party Disclosure), AS-21 (Consolidated Financial Statements) and AS-22 (Taxes on Income); banks must conform to these standards for periods commencing on or after April 1, 2002.

Clients of registered sub brokers entitled to investor protection fund compensation when the member broker defaults.
Where a member broker defaults, clients who transacted through a registered sub broker are to be treated as clients of that member and are eligible to submit claims against the Investor Protection Fund/Customer Protection Fund; stock exchanges must entertain and process legitimate compensation claims from such clients and should not deny claims solely because the dealings were through a registered sub broker.

Code of Conduct for mutual fund intermediaries mandates certification, suitability-based recommendations, full disclosures and refusal to deal with noncompliant agents.
A mandatory Code of Conduct requires mutual fund agents and distributors to protect investor interests by complying with SEBI Mutual Fund Regulations, providing full and current scheme information, disclosing material facts and risks, avoiding misrepresentation and commission-driven malpractices, maintaining confidentiality, ensuring client suitability, and obtaining AMFI certification; mutual funds must monitor intermediaries, report non-compliance to AMFI and SEBI, and refuse to deal with those who do not follow the code.

Mandatory dematerialisation of government securities: regulated entities must use SGL/CSGL/demat and stop physical trading immediately.
Regulated entities must hold Government securities only in SGL, CSGL or dematerialised accounts, with only one CSGL or dematerialised account per entity; CSGL holders must open or notify a designated funds account at a bank; entities must ensure clear funds for purchases and sufficient securities for sales before transacting, and immediate prohibition is placed on further physical-form transactions with brokers.

EDIFAR filing requirement mandates online submission of annual, periodic financial and governance statements, with compliance officer accountability.
SEBI and NIC establish the EDIFAR system requiring specified listed companies to file on-line, in prescribed manner and format, annual reports (including balance sheet, profit and loss account and auditor's report), cash flow statements, half yearly and quarterly financial statements, corporate governance reports, shareholding patterns and statements of regulatory action. Companies must appoint a compliance officer responsible for filing and ensuring correctness, include a prescribed disclaimer identifying the company and compliance officer, and file electronically simultaneously with stock exchange submissions; EDIFAR obligations are supplementary to existing listing agreement requirements.

Insider trading compliance required for trustees, AMCs and personnel; dematerialisation and treatment of illiquid securities mandated.
Mutual funds must transact in government securities in dematerialised form. Trustees must determine whether amounts realised from illiquid securities or NPAs on scheme winding up are substantial and, if realised within two years and substantial, distribute them to former investors; otherwise transfer to the Investor Education Fund. Trustee companies, asset management companies and their personnel must strictly comply with insider trading regulations.

Normal rolling settlement: specified scrips moved from trade-for-trade into rolling settlement with staged effectiveness dates.
The circular directs immediate migration of specified scrips to Normal Rolling Settlement where depository connectivity exists, and prescribes phased transfers of further scrip cohorts from the trade-for-trade segment into normal rolling settlement on specified future effective dates, requiring exchanges to implement these settlement-mode changes contingent on depository connectivity.

Margin requirement for foreign institutional investors on sale positions withdrawn, custodians instructed to notify clients under SEBI guidance.
SEBI notified that the temporary margin requirement on foreign institutional investors' sale positions has been withdrawn and custodians are directed to inform their FII clients; the implementing circular is enclosed and available on SEBI's Foreign Institutional Investors web page.

Margin requirements revised: sale-side margins withdrawn, price band removed and upfront margin collection threshold clarified.
The circular withdraws the temporary sale-side margin requirement on financial institutions, FIIs, banks and mutual funds that was based on a minimum VaR differential, and withdraws the temporary 10% price band on selected derivative-underlying stocks. The 10% upfront margin requirement for clients (excluding FIs, FIIs, MFs) is narrowed so brokers collect it only where the resulting margin reaches the specified collection threshold; certification of collection will be carried out by the compliance officer under the broker regulations.

Reporting of securities write-off: FIIs must report write-offs as nil-value sales and follow prescribed disinvestment procedures.
SEBI mandates that securities may be written off only with prior FII approval and must be reported as sales at nil value or as compensation; recovered securities must be reported as purchases after obtaining prior regulatory permission. Where custodians cannot deliver or identify claimants, they must sell such securities on the exchange, credit net proceeds to the regional Investors Protection Fund within seven days, report the sale as a normal sale, and provide monthly confirmations. Custodians act as trustees and must include write-off and disinvestment provisions in client agreements. Reporting transaction codes: write-off 17, write-back 18, disinvestment 4.

Monthly Activity Reporting requirement for derivatives mandates standardized exchange submission of trading and compliance data by the seventh.
SEBI requires derivatives segments of recognised exchanges to submit a standardized Monthly Activity Report (MAR) in the Annexure A format from May 2002 onwards by the 7th of the following month, covering detailed trading statistics across contract types, comparisons with cash market volumes, participant volume contributions, price scanning ranges, eligibility criteria compliance for underlyings, member/FII registration and inspection data, investor education and certification activity, investor complaints and arbitrations.

Audit qualification disclosure required in listed companies' financial results; exchanges must seek company explanations and remediation.
Companies may elect to publish annual audited results within three months instead of unaudited last quarter results and must use the prescribed Annexure I format. All audit qualifications must be disclosed in published unaudited or audited results with their impact on profit or loss. Where qualifications exist, the stock exchange must ask the company to explain the reasons for the qualification, why unqualified accounts were not published, and when qualifications will be removed. Exchanges must incorporate these amendments into the Listing Agreement and confirm compliance.