System-based gross margining required; exchanges must use client-code transaction data for margin calculation or lose margin facilities.
SEBI mandates implementation of system-based gross margining using system-available transaction data and mandatory client-code entry at broker order-entry; exchanges must calculate MCFS/ALBM margins from system data rather than broker self-certification and face discontinuation of MCFS/ALBM/BLESS facilities for non-compliance.

Securities lending custody: lent securities must remain with the clearing corporation and not be sold during settlement.
Securities borrowed under the Automated Lending and Borrowing Mechanism (ALBM) and the Borrowing and Lending Securities Scheme (BLESS) must remain deposited with the exchange's Clearing Corporation or Clearing House and shall not be sold or substituted during the same settlement cycle; exchanges are directed to ensure strict compliance with this custody and prohibition requirement.

Sale backed by delivery requirement continues until further notice, applying to proprietary trades and deferral product positions.
Sales transactions must be backed by delivery unless preceded by an equivalent purchase in the same client name on the same or any other exchange; this applies to proprietary and client trades in deferred-settlement products and operates on self-certification subject to exchange off-site inspection and inter-exchange information sharing.

Restriction on foreign investment in print media: purchases by certain foreign investors barred and exchanges must notify brokers.
An amendment to the foreign exchange regulations disallows purchase of shares and convertible debentures of Indian companies engaged in the print media sector by Foreign Institutional Investors and Foreign Venture Capital Investors; stock exchanges are directed to notify their brokers of this restriction for compliance and awareness.

Settlement Guarantee Fund utilisation permitted to meet member shortfalls before declaring default, subject to suspension and collateral conditions.
Exchanges may utilise the Settlement Guarantee Fund and other monies to meet members' settlement fund shortages before declaring them defaulters, subject to bye law amendment. Where shortages exceed thresholds relative to Base Minimum Capital or recur within specified periods, trading is withdrawn and securities pay outs withheld; on recovery members face reduced gross exposure for a set number of settlements. Exposure may be restored upon absence of further shortages or by depositing funds shortage collateral (cash, FDR, or bank guarantee) held for the specified period. Outstanding amounts attract penal interest of not less than 0.09% per day.

In-principle listing approval required before issuing further shares to prevent unlisted deliveries and ensure depository notification.
Companies issuing further shares must obtain in-principle approval for listing from the relevant stock exchange before issuing those shares. Stock exchanges must amend the Listing Agreement to require this, notify depositories immediately upon granting in-principle approval (uploading electronically where connected), and regional exchanges must confirm listing on all exchanges applied to. The instruction is effective immediately.

Compulsory dematerialised trading mandates affected scrips be transacted only in demat form, shifting non compliant scrips to trade for trade.
Compulsory dematerialised trading is directed for specified scrips and requires those scrips to be transacted in dematerialised form by all investors once connectivity with both depositories is established and a three month transition period expires. Scrips failing to establish connectivity by the scheduled date are to be traded only in the trade for trade settlement window until connectivity is achieved; scrips that subsequently establish connectivity return to normal trading with deliveries in physical or dematerialised form and become compulsorily dematerialised three months after restoration.

Restriction on investments in print media bars FIIs from purchasing certain securities and requires custodian compliance and client notice.
The regulatory amendment disallows purchase of shares and convertible debentures of Indian companies in the print media sector by specified non resident investors, including Foreign Institutional Investors and Foreign Venture Capital Investors. All FIIs and custodians must ensure compliance with the amendment, and custodians are instructed to notify their clients of the restriction and implement the prohibition in their operations.

Separate Scheme Requirement: additional plans with substantially different characteristics must be launched as standalone schemes with full disclosures.
Additional plans with substantially different characteristics from the main mutual fund scheme must be launched as separate schemes, not as parts of ongoing open ended schemes. Such launches require board and trustee approval, submission of addenda or separate offer documents to the regulator prior to opening, disclosure of minimum subscription, salient features, risk factors and entry/exit loads, availability of application forms on AMC websites, and separate application of investment restrictions and periodic disclosure obligations to each plan.

Venture capital reporting requirement: quarterly submission of standardized fund and investment data, including soft copy.
Mandatory venture capital reporting requires all registered Venture Capital Funds to submit Annexure A quarterly returns and an Excel soft copy within fifteen days after each calendar quarter, starting from the quarter ended December 31, 2000. Reports must include fund identification and structural details, corpus and tenure information, quarter and cumulative amounts for funds raised, investments made and liquidated, scheme wise and investor category breakups, instrument classifications, sectoral and stage wise investment distributions, and cumulative disinvestment strategies in the prescribed formats.

Compulsory dematerialised trading required for connected scrips; non connected scrips confined to trade for trade settlement.
Compulsory dematerialised trading is mandated for specified listed scrips that have established connectivity with both depositories, while scrips lacking connectivity are to be traded only in the trade for trade settlement window until connectivity is achieved. Scrips that regain connectivity move to the normal trading segment with deliveries in physical or dematerialised form and then become subject to compulsory dematerialisation after a three month transition period. Exchanges and depositories must apply the classifications and timelines set out in the annexed lists.

Disclosure of NAVs must be updated promptly on central platform; delays require explanation and public notification.
Mutual funds must publish scheme NAVs and sale/repurchase prices on the central AMFI website daily by the prescribed evening deadline; any delay must be explained to AMFI and the regulator by the next day, and if NAVs are unavailable by the next business day's start the fund must issue a press release stating reasons and when publication will occur.

Deposit composition change: non-cash component may be accepted as bank FDRs creating unencumbered lien for sub-brokers' deposits.
The circular permits the non-cash component of sub-broker deposits with the subsidiary to be in the form of bank Fixed Deposit Receipts (FDRs) instead of solely irrevocable bank guarantees. Such FDRs must be discharged in favour of the subsidiary/company and the subsidiary/company must be given a complete, unencumbered and unconditional lien on those FDRs, thereby securing the subsidiary's interest in the non-cash deposit component.

Client code mandatory: exchanges risk suspension of MCFS and ALBM if noncompliant, with system calculated margins.
SEBI requires mandatory implementation of a client code at broker level with phased suspension of MCFS/ALBM or trading for noncompliant exchanges; MCFS and ALBM margins must be system-calculated rather than self-certified. The circular extends CFRS, ALBRS and CNS facilities to voluntary rolling settlement for eligible scrips, permits conditional use of Trade/Settlement Guarantee Funds for primary issues with exchange-wide application, exposure limits and a minimum cash margin, mandates minimum margin deposits and quarterly auditors' certificates from brokers and sub-brokers, allows membership buy-backs under existing law, and requires a trading-system icon to show prior-day buy-back positions.

Transfer deadline reduction for CM pool securities enforces quicker client credit and penalises prolonged pool holdings, with direct delivery required.
Clearing members must transfer securities from CM Pool accounts to clients' beneficiary accounts within six calendar days after pay-out, failing which such securities are ineligible for subsequent delivery, pledging, or lending and attract a weekly penalty credited to a depository account for investor education; identification will move from FIFO to settlement-wise records and a direct delivery mechanism will be introduced, reducing the transfer deadline to four calendar days or two working days where applicable.

Quarterly shareholding disclosure requires listed companies to file and publish a prescribed detailed shareholding pattern online.
Listed companies must file and publish a prescribed quarterly shareholding pattern within fifteen days of quarter end, using a tabular format dividing Promoter and Non Promoter holdings with subcategories, naming entities/individuals holding more than one percent, disclosing total foreign shareholding including GDRs and ADRs, and applying the takeover regulations' definitions for promoters and persons acting in concert; stock exchanges must post the disclosures on their websites.

Disclosure of annual accounts required: exchanges and clearing corporations must publish accounts online and provide copies.
Stock exchanges, clearing corporations and their subsidiaries must disclose financial information by posting their annual accounts on their websites and by making copies available to investors, intermediaries and the general public at a reasonable cost, with immediate steps required to comply to enhance transparency.

Corporate governance compliance required: stock exchanges must monitor quarterly reports and ensure listing committees are constituted before listing.
SEBI directs stock exchanges to set up monitoring cells to collect quarterly Clause 49 compliance reports from companies, consolidate and submit them to SEBI within thirty days of quarter end, using a prescribed format covering board composition, audit committee, shareholders/investors grievance committee, director remuneration, board procedures, management disclosures and the corporate governance report; initial public listings must demonstrate board and committee constitution before listing or face escrow of application money until compliance.

Sub-broker registration requirement: sub-brokers may commence business only after SEBI issues registration certificate and brokers must ensure compliance.
Brokers and stock exchanges must ensure sub-brokers do not commence buying, selling or dealing in securities until SEBI has cleared the registration and the sub-broker holds the SEBI-issued registration certificate; mere application to a broker or exchange does not permit commencement of business, and contravention or abetment invites penal consequences under the SEBI Act.

Compulsory dematerialised trading required for identified scrips after depository connectivity, with trade-for-trade interim treatment.
Compulsory dematerialised trading is mandated for specified scrips once companies have established connectivity with both depositories, with compulsory trading commencing three months after the connectivity-based commencement date; scrips lacking connectivity are to be traded on the trade-for-trade settlement window from the settlement period commencing on or immediately after the prescribed date. Scrips that move from trade-for-trade to the normal segment upon establishing connectivity will become compulsorily dematerialised three months after reinstatement, linking trading-segment treatment to depository connectivity and settlement-period deadlines.