Past risk and return verification framework expands with PaRRVA recognition, transitional disclosure limits, and revised oversight committee composition.
Operationalisation of Past Risk and Return Verification Agency is carried out by recognising Care Ratings Limited as PaRRVA, with National Stock Exchange India Limited as the Data Centre. Investment Advisers and Research Analysts who wish to communicate certified past performance data must enroll with PaRRVA by 3 August 2026, and may use such pre-PaRRVA data only up to 3 May 2028. The oversight committee composition is revised, with a minimum of five members and a majority of independent members over PaRRVA and Data Centre representatives.

Debenture trustee compliance timeline extended for separating non-SEBI-regulated activities into separate business units.
SEBI extended by six months the compliance timeline for debenture trustees to transfer activities not regulated by SEBI to separate business units under the amended Debenture Trustees framework. The amendment and the related circular are to be implemented by October 27, 2026, while all other provisions of the earlier circular remain unchanged.

Net settlement of funds for FPI outright cash market trades eases liquidity pressure while preserving gross securities settlement.
Permits net settlement of funds for outright transactions undertaken by Foreign Portfolio Investors in the cash market, while retaining gross settlement for securities delivery and the existing settlement framework with custodians and clearing corporations. Only securities with an exclusive outright buy or exclusive outright sell in a settlement cycle are eligible for netting. Securities involving both purchase and sale in the same cycle remain on gross basis. Securities Transaction Tax and stamp duty continue on delivery basis, and implementation standards are to be framed by custodians and the designated forum after stakeholder consultation.

Social Stock Exchange funding rules ease NPO registration timelines and lower minimum subscription for zero coupon zero principal instruments.
Registration of a Not for Profit Organization on a Social Stock Exchange may continue without fund raising for two years, with a possible one-year extension subject to approval. The minimum subscription requirement for issuance of Zero Coupon Zero Principal Instruments is reduced to 50% where the Social Stock Exchange undertakes due diligence and is satisfied that the funds can be deployed in a meaningful manner consistent with the disclosed objects of the issue. In case of under-subscription, the NPO must disclose how the balance capital will be raised and the impact on social objectives, and refund the funds if the minimum subscription is not achieved.

Social Impact Assessor certification requires the prescribed NISM examination or renewal through the eCPE program.
Social Impact Assessors must obtain and maintain the prescribed National Institute of Securities Markets certification under the SEBI ICDR framework. The specified certification is the NISM Series XXIII - Social Impact Assessors Certification Examination. For renewal, the assessor must either retake the examination or complete the NISM Series XXIII - Social Impact Assessors Certification eCPE Program.

Pledged shares lock-in mechanism gains a non-transferable framework under the ICDR Regulations for market compliance.
SEBI has introduced an operational mechanism under the ICDR Regulations for lock-in of pledged shares where conventional lock-in cannot be created. Such securities may be recorded as non-transferable by depositories for the applicable lock-in period, supported by issuer-level measures including Articles of Association provisions, lender or pledgee intimations, and disclosures in offer documents. Stock exchanges, depositories, merchant bankers and issuers are required to ensure compliance with the revised mechanism.

Minimum public shareholding relaxation suspends penal action for listed entities facing compliance deadlines during the specified period.
One-time relaxation from penal provisions under the SEBI Master Circular is granted for listed entities that fail to meet minimum public shareholding requirements where the due date for compliance falls between 1 April 2026 and 30 September 2026. Recognised stock exchanges and depositories are directed not to initiate penal action, including levy of fines and freezing of promoter shareholding, and any penal action already initiated for non-compliance during that period may be withdrawn. The relaxation takes effect immediately, and stock exchanges must notify listed entities and implement necessary amendments.

SEBI observation letter validity relaxation extends expiry dates for public issue filings subject to lead manager undertaking.
SEBI has granted a one-time relaxation extending the validity of observation letters expiring between 1 April 2026 and 30 September 2026 up to 30 September 2026. The extension applies subject to an undertaking from the lead manager confirming compliance with Schedule XVI of the ICDR Regulations while submitting the updated offer document to the Board. The circular takes immediate effect and operates within the framework governing the opening of public issues after SEBI observations.

Research analyst audit eligibility expands to include cost accountants, with reporting, disclosure, and client communication obligations continuing.
The annual audit framework for research analysts and research entities is clarified to recognise members of the Institute of Cost Accountants of India as eligible auditors alongside members of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India. The audit must cover compliance with the Research Analysts Regulations and circulars, be completed within six months from the end of each financial year, and the report must be submitted to RAASB or SEBI within one month of the audit report and no later than 31 October. The compliance status, adverse findings, and action taken must be published on the website and the report provided to clients.

Investment adviser audit eligibility clarified to include cost accountants for annual compliance audit and certificate requirements.
Clarification is issued on the eligibility of members of the Institute of Cost Accountants of India to conduct the annual audit of Investment Advisers. The amended framework recognises members of ICAI, ICSI and ICMAI as eligible to carry out the annual audit, submit the audit report and adverse findings, and support the annual certificate requirement relating to client-level segregation compliance as part of the compliance audit.

Intraday borrowing guidelines for mutual funds deferred as implementation under the borrowing framework now begins on July 15, 2026.
Intraday borrowing guidelines for mutual funds under the borrowing framework have been deferred, and the relevant provisions in the master circular will now come into effect from July 15, 2026. The addendum addresses operational challenges raised by asset management companies and adjusts only the implementation timing, not the substantive borrowing framework.

Enhanced supervision reporting relaxed for stock brokers as demat tagging exemptions and bank account reporting are harmonised.
Ease of doing business measures relax enhanced supervision reporting obligations for stock brokers that are also primary dealers and harmonise bank and demat account treatment under the Master Circular for Stock Brokers. Demat accounts used exclusively for activities other than stock broking activities are excluded from tagging requirements, and a stock broker which is also a bank or primary dealer need report only bank accounts used for stock broking activities.

Mutual fund regulatory framework updated with consolidated scheme, disclosure, risk and passive fund requirements under new SEBI rules.
Comprehensive regulatory framework for mutual funds is consolidated and updated to align existing SEBI circulars with the SEBI (Mutual Funds) Regulations, 2026, effective April 01, 2026. The circular replaces the earlier Master Circular for Mutual Funds dated June 27, 2024, rescinds specified prior circulars, and preserves actions, rights, liabilities, pending applications, proceedings and penalties under the rescinded instruments as if taken under the updated Master Circular. It also requires periodic and continuous reporting by regulated entities and adopts the meaning given in the relevant Regulations for undefined terms.

Settlement Guarantee Fund coverage now requires simultaneous default of at least three clearing members; case by case exemptions may be granted.
The circular amends Core SGF stress-testing coverage by requiring Clearing Corporations to calculate credit exposure for each scenario based on the simultaneous default of at least three clearing members (and their associates) causing the highest credit exposure. It also adds a provision permitting SEBI, after due deliberation, to grant case-by-case exemptions or relaxations from strict enforcement of SGF provisions, considering market conditions, adequacy of risk management framework and investor protection.

Intraday borrowings permitted for mutual funds to bridge redemption timing, subject to receivable backing and AMC liability.
Mutual funds may use intraday borrowings only to bridge timing mismatches for repurchase/redemption and payout obligations, subject to a board approved policy uploaded on the AMC website. Such borrowings cannot exceed the day's guaranteed receivables from specified government and clearing counterparties (including TREPS, reverse repo, government securities proceeds and interest). AMCs must comply with relevant regulatory schedules and master circular provisions and shall bear any costs or losses arising from intraday borrowing or delayed receivables.

Certification requirement for research support staff relaxed: lighter NISM module introduced for sales and non-core PARS with immediate effect.
A lighter certification pathway requires PARS performing sales and other non-core services to pass the NISM Series-XXV-A examination, while PARS not in those roles must continue to clear the NISM Series-XV Research Analyst examination. PARS holding Series-XV as of the circular date need not take Series-XXV-A until their Series-XV validity expires. The circular is effective immediately and directs the Research Analyst Administration and Supervisory Body to amend bye-laws and disseminate the change.

Voluntary debit freeze facility introduced to prevent debits from mutual fund folios until investors unlock them via MF Central.
A voluntary debit freeze will prevent debits from demat and non demat mutual fund folios until unlocked, to be enabled via the MF Central RTA platform for KYC compliant investors with validated email and mobile. AMFI will prescribe locking/unlocking procedures and the list of permitted transactions during the lock period, with AMCs/RTAs required to disclose the process and impacts on their websites and in the Statement of Additional Information.

Regulatory reporting by AIFs now requires an annual comprehensive SI Portal filing with reduced limited quarterly returns for streamlined compliance.
AIFs must submit a comprehensive Annual Activity Report on the SEBI Intermediary Portal within thirty calendar days of the financial year end, and a reduced Quarterly Activity Report in a revised format within fifteen calendar days of each quarter (excluding the March quarter, which is covered by the annual report). Revised reporting formats will be published by the AIF Standards Forum/industry association, which will assist AIFs in implementing the changed reporting requirements; the circular supersedes prior Master Circular provisions and is effective immediately.

Custodian governance and operational requirements strengthened: segregation of services, risk management, BCP and reporting streamlined.
SEBI prescribes that custodians (except banks or their affiliates) segregate SEBI-regulated activities into separate Strategic Business Units with arm's-length accounting and exclusion from net worth calculation, disclose and obtain client acknowledgement for unregulated services, and implement controls when sharing resources. Custodians must adopt board-level governance, an annually reviewed risk management policy with a designated senior risk officer and STR measures, maintain scalable IT capacity and a Business Continuity Plan with geographically or seismically separated DR sites, and implement orderly wind-down arrangements to ensure client portability.

Independent third party review required for green debt securities to verify eligibility and be disclosed in offer documents.
SEBI requires issuers to appoint an independent third-party reviewer/ certifier to confirm that issuance of green debt securities meets the regulatory definition and to review processes including project evaluation, selection criteria and eligible project categories. The reviewer must be independent of the issuer and its management, remunerated to avoid conflicts of interest, and have expertise in ESG debt securities. The review scope must be set out in the offer document, reviewer details disclosed, and the external review may take forms such as Second Party Opinion, Verification, Certification, or Scoring/Rating per ICMA guidance.