Delivery Instruction Slip controls tightening to prevent unauthorized transfers; enhanced DP verification and issuance limits mandated.
Safeguards require controls on Delivery Instruction Slips (DIS) and depositor-depository procedures to prevent unauthorized transfers from Beneficial Owner accounts. DPs must not accept pre-signed or blank DIS, must limit booklet and loose DIS issuance, cancel slips when loss is reported, and issue new booklets only after substantial use or validated loss. DPs must verify signatures, record verification details on instruction slips, and cross-check with BOs for transfers that move all ISIN balances from inactive accounts or multiple ISINs from active accounts. Depositories must amend rules, notify DPs, monitor compliance and report implementation.

Dematerialisation requirement enables shift from Trade-for-Trade to rolling settlement upon prescribed non promoter dematerialisation and certification.
Establishment of connectivity with both depositories permits shifting securities from the Trade for Trade Segment to rolling settlement provided prescribed levels of non promoter holdings are held in dematerialised form and certified by the Registrar and Transfer Agent or, if no separate RTA exists, by a practising Company Secretary or Chartered Accountant; shifting must not occur where other grounds justify continuation in Trade for Trade. Stock exchanges must report actions taken in the Monthly/Quarterly Development Report (Section II, item no. 13).

FII regulatory amendment notifies revised compliance and procedural framework for foreign institutional investors; circular attaches the notification.
Amendment to SEBI (Foreign Institutional Investors) Regulations communicates a regulatory change affecting foreign institutional investors and custodians, transmits the official gazette notification as an annexure, makes the amendment text available on the regulator's website, and directs recipients to take necessary action under the revised regulatory framework.

Exclusive investor grievance e-mail mandated for intermediaries to enable complaint registration and follow-up under a regulatory directive.
All registered Merchant Bankers, Registrars to an Issue/Share Transfer Agents, Debenture Trustees, Bankers to Issue and Underwriters must designate an exclusive e-mail ID of the grievance redressal division or compliance officer for investor complaints, enable follow-up and monitoring of those complaints, and prominently display the e-mail ID and related contact details on their websites and investor materials.

FII investment limits in government securities increased, reallocating headroom toward 100% debt FIIs and notifying custodians.
SEBI increases the cumulative ceiling for FII investment in Government Securities and T Bills, adding the incremental headroom to the existing allocation for 100% debt FIIs while maintaining the 70:30 FIIs allocation unchanged; corporate debt limits remain unchanged. The circular provides revised per category and aggregate permissible limits for government securities/T bills and corporate debt and asks custodians to inform their FII clients.

Dematerialisation requirement enables shifting from trade-for-trade to rolling settlement upon certified dematerialisation of prescribed holdings.
Companies with connectivity to both depositories may be shifted from Trade-for-Trade to Rolling Settlement provided a prescribed proportion of non-promoter holdings are dematerialised and certified by the RTA or, if none, by a practicing company secretary/chartered accountant, and provided there are no other grounds for continuation in Trade-for-Trade; stock exchanges must report actions taken in their development reports.

Overseas investment limit for mutual funds updated; individual fund cap linked to net assets and subject to a fixed maximum.
Mutual funds may invest in ADRs, GDRs, foreign securities and overseas ETFs within an overall overseas investment ceiling of US$3 billion, subject to an individual sub ceiling not exceeding 10% of a fund's net assets as on March 31 of the relevant year and capped at US$150 million per fund; all other conditions from the prior circular remain unchanged and the directions are issued under Section 11(1) of the applicable Act and Regulation 77 of the Mutual Funds Regulations.