OTC transaction reporting for Certificates of Deposit and Commercial Paper: reports to FIMMDA within fifteen minutes for market dissemination.
SEBI requires all regulated intermediaries to report OTC transactions in Certificates of Deposit and Commercial Paper to the FIMMDA reporting platform promptly after trade execution; FIMMDA will issue operational guidelines to implement the reporting process and the circular is issued under SEBI's investor-protection and market-regulation powers.

Options on USD INR spot rate permitted with cash settlement, specified contract design and real time margin framework.
Permit introduction of options on USD INR spot rate with product specifications: premium styled European calls and puts, rupee quoted premiums with USD underlying positions, cash settlement in rupees against the Reserve Bank Reference Rate, serial monthly and quarterly contracts, contract size of US$1000, defined trading hours, strike availability, expiry and automatic exercise rules, T+1 premium settlement, and a risk framework requiring Initial Margin based on worst scenario portfolio loss (using specified price and volatility scenario ranges and standard option pricing models) plus an Extreme Loss Margin.

PAN requirement: demat accounts non-compliant with PAN will be suspended for credits, barring automatic corporate actions.
SEBI requires PAN verification for demat accounts and directs that PAN-noncompliant accounts, previously suspended for debit, will also be suspended for credit except for credits from automatic corporate actions; credits from public offers, rights issues, off-market transfers, and secondary market transactions are prohibited. Depositories must amend bye-laws, notify DPs and Beneficial Owners, and disseminate the rule on their websites to enforce KYC compliance.

ASBA facility requirement: mutual funds must offer ASBA for all new fund offers from the revised effective date.
Mutual funds must provide Applications Supported by Blocked Amount (ASBA) as an additional payment mode for New Fund Offers, with the mandatory implementation date revised to a later effective date; the circular imposes a compliance obligation on Mutual Funds and Asset Management Companies to offer ASBA for NFO subscriptions under the regulator's statutory powers to protect investors and regulate the securities market.

Market access certification now requires authorised persons' approved users and sales staff to hold continuous segment-specific certification.
The circular modifies the existing market-access framework by deleting a prior sub-clause and inserting a new provision requiring that approved users and sales personnel of Authorised Persons possess and maintain the necessary certification for the respective segments at all times, aligning their obligations with those of stock brokers and sub-brokers; exchanges must amend bye-laws to implement the framework and the measure takes effect immediately under regulatory powers to protect investors.

Call auction in pre-open session introduced for benchmark scrips; establishes price discovery, order priority and dissemination rules.
A pilot call auction is to be introduced in the pre-open session for benchmark index scrips, with segmented order entry, matching and buffer phases, random closure during order entry, admission of limit and market orders within a price band, continuation of the cash market risk framework, and dissemination of indicative equilibrium price and cumulative quantities. Equilibrium price selection prioritises maximum tradable volume, then minimum imbalance and proximity to prior closing; order execution gives precedence to limit orders, and unmatched orders shift to the continuous market under time priority. Exchanges must implement systems, amend rules, notify members and obtain regulator approval; the framework is reviewable after three months.

Settlement flexibility for stock derivatives allows cash or physical settlement, subject to exchange systems and SEBI approval.
SEBI permits exchanges to offer cash or physical settlement for stock options and futures in any of four configurations, with phased introduction allowed but physical settlement required to be completed within six months. The settlement mechanism must be decided in consultation with Depositories. Physically settled expiries/exercises are subject to the cash segment risk management framework, and cash and derivative settlements remain separate. Exchanges must establish systems, amend bye-laws, notify market participants, publish details, and submit an implementation framework to SEBI; any change of settlement mode requires prior SEBI approval.

ASBA facility: downloadable pre filled bid forms with unique application numbers and electronic blocking of bid funds.
ASBA bid cum application forms must be downloadable from exchange websites with a unique application number; merchant bankers must provide issue details and a soft copy of the prospectus in advance so exchanges can pre fill and post forms; exchanges must ensure form accuracy, online prospectus access, generation of unique application numbers, and availability of bid revision forms. The forms authorise SCSBs to block/unblock funds, upload bids electronically, transfer funds after allotment instructions, and set rejection consequences for incorrect demat, PAN, or insufficient funds.

Exposure margin: minimum reduced while retaining a multiple of standard deviation as the floor for equity derivatives.
SEBI amends exposure margin for exchange traded equity derivatives so that for gross open positions in single stock futures and gross short open positions in stock options the exposure margin shall be the higher of a reduced fixed minimum and 1.5 times the standard deviation of daily logarithmic returns of the stock price applied to the notional value of the position, replacing the previously higher fixed minimum.

Account maintenance charge refund ensures pro rata reimbursement on demat account closure or transfer under regulatory mandate.
Depositories must require DPs collecting annual or half yearly upfront account maintenance charges to refund the unearned AMC to beneficial owners upon account closure or transfer, calculated on a pro rata quarterly basis from the account opening date; quarterly and monthly AMC regimes are excluded. Depositories must amend bye laws, notify DPs, publish the requirement and communicate to BOs under the regulator's statutory powers.

Reporting of securities lending moves to weekly submissions; fresh short positions must be reported immediately to the regulator.
Foreign Institutional Investors must submit consolidated reports of securities lent on a weekly basis (filed every Friday) with public dissemination weekly on Tuesdays; PN-issuing FIIs must include an undertaking that any fresh short position will be reported immediately, and all material must be sent to the regulator's dedicated email address.

Certification requirement for mutual fund distributors: NISM examination mandated, with transitional CPE option for experienced or senior distributors.
Persons engaged in the sale and distribution of mutual fund products must obtain valid certification by passing the NISM certification examination; distributor registration remains required after certification. Senior or experienced persons may alternatively meet specified Continuing Professional Education (CPE) requirements in lieu of passing the examination. Transitional provisions permit holders of the prior industry certificate whose validity expires within the transition window to comply with NISM CPE requirements by the end of the transition period, while others must comply before their certificate expiry.

Valuation of debt and money market instruments: effective implementation deferred, early voluntary adoption permitted by regulator
SEBI postpones the operative date for the prescribed valuation methodology for debt and money market instruments and permits mutual funds and related entities to voluntarily implement the valuation approach prior to the revised effective date; the circular invokes SEBI's regulatory powers to ensure investor protection and market regulation compliance.

Customer due diligence obligations updated; intermediaries must enhance measures for PEPs and revisit CDD on suspicion.
Intermediaries must maintain an independent internal audit; periodically update all client and beneficial owner information collected under the Customer Due Diligence process; revisit CDD on suspicion of money laundering or terrorist financing; not apply low-risk provisions when suspicion exists; consult FATF and other public sources for high-risk jurisdictions; adopt risk management to identify Politically Exposed Persons and apply enhanced CDD and verification of source of funds for PEPs; retain identity records for ten years from termination; and observe a broad prohibition on "tipping off" before, during and after suspicious transaction reporting.

Allocation of corporate debt investment limits to FIIs through bidding and FCFS processes with procedural caps.
Corporate debt investment limits for FIIs are allocated by a two-track mechanism: a modified competitive bidding process with per-entity caps and minimum bid and tick sizes, and an FCFS electronic allocation of residual limits subject to a lower per-entity ceiling. FCFS requests must be emailed to the designated address within the specified window and any FCFS-allocated limit must be utilized within a defined utilization period; custodians must inform their FII clients and follow the prescribed application format.

Regulatory order disclosure: Depositories must publish past and future orders and arbitration awards promptly online.
Depositories must post on their websites all regulatory orders and arbitration awards issued since April 1, 2007 within thirty days and must post immediately any such orders and awards issued after this circular; they must also publish the circular's provisions on their sites and communicate implementation status in their Monthly Development Report, under powers granted by relevant securities and depositories legislation.

Dematerialisation requirement: majority of non promoter holdings must be dematerialised before shifting securities to rolling settlement.
Companies with connectivity to both depositories may be moved from Trade for Trade Settlement to Rolling Settlement only if a majority of non promoter holdings are dematerialised, evidenced by a certificate from the Registrar and Transfer Agent or, lacking a separate RTA, from a practicing Company Secretary or Chartered Accountant, and provided there exist no other reasons to continue TFTS; stock exchanges must report action taken in their Development Reports.

SME exchange listing framework mandates full-listing on SME platforms and compulsory market making obligations.
The circular requires issuers using Chapter XA of the ICDR Regulations to list their entire specified securities on the SME exchange, file offer documents with SEBI and the SME exchange through merchant bankers without SEBI observations, ensure 100% underwriting with merchant bankers underwriting a prescribed share and permitting nominated investor arrangements, and obliges merchant bankers to provide market making through registered market-maker brokers for a minimum period with specified transfer and promoter-share restrictions. Recognised exchanges seeking SME platforms must meet corporatisation, net worth, nationwide trading, surveillance, clearing, settlement and investor redressal criteria and obtain SEBI approval.

SME listing conditions impose standardized listing agreements, half yearly reporting, governance standards and a 25% public shareholding requirement.
The Model SME Equity Listing Agreement requires issuers to enter a standardized listing contract for specified securities under Chapter XA, prescribing operational obligations on issuance, certificate handling, transfers, demat suspense accounts for unclaimed shares, timelines and compensation for transfer delays, and arbitration for disputes. It imposes half-yearly financial reporting and disclosure duties (including shareholding patterns, material events, and board decisions), corporate governance standards (board composition, audit committee, CEO/CFO certification), a minimum 25% public shareholding requirement with remedial measures, and fee, filing and dematerialisation obligations, with enforcement powers for non-compliance.

Change of control and status require prior regulatory approval for a credit rating agency to continue operations after restructuring.
The regulations define change of status or constitution to include corporate restructuring, change in managing director or whole-time director, and any change in control; and define change in control by reference to takeover rules for listed entities and as a controlling interest of at least fifty-one per cent for others. They further require that a credit rating agency proposing such a change must obtain the prior approval of the Board to continue to act as a CRA after the change.