Permanent Account Number requirement: mutual fund investors must provide PAN or declare non allotment for high value applications.
Mutual fund applicants must provide their PAN or, if not allotted, the GIR number and income tax Circle/Ward/District, or state non allotment; in joint applications each applicant must do so. Application forms lacking these identification details must not be accepted by the mutual fund, as part of strengthened know your client procedures under SEBI mutual fund regulation.

Uniform security-specific actions must be applied across exchanges; non-compliant exchanges must block normal settlement trading.
All stock exchanges must implement uniformly the security specific surveillance measures decided by the principal exchanges-including transfers between rolling settlement and trade for trade segment, imposition of margins, and suspension of trading-by obtaining information from the principal exchanges' websites and implementing decisions concurrently. If an exchange cannot implement a decision for a particular scrip, it shall not permit that scrip to trade in normal rolling settlement; non principal exchanges must report implementation status in the Monthly Development Report. The circular is issued under Section 11 (1) of the SEBI Act.

Electronic contract note adoption required for debt market; exchanges must amend rules and notify members.
Stock exchanges must adopt a standard model format for electronic contract notes in the debt market by amending bye laws, rules and regulations immediately; notify and disseminate the requirements to member brokers and clearing members; and report implementation status to SEBI in the Monthly Development Report. The circular applies related procedural requirements from prior equity guidance and is issued under SEBI's regulatory powers to protect investor interests and promote market development.

Minimum derivative contract value requirement adjusted; exchanges to alter lot sizes to maintain threshold with prior market notice.
A prescribed minimum contract value must be met for exchange-traded derivatives; where contract value equals or exceeds higher thresholds Exchanges must reduce lot size/multiplier (by specified fractions) and where contract value is below the minimum Exchanges must increase lot size/multiplier in multiples of two to bring contract value to the minimum. The prior requirement that lot size be a multiple of 100 is revoked.

Regulated entity definition expanded: corporate filings, central bank or securities regulator supervision, exchange membership, or externally managed investment entities.
Clarifies the scope of entities treated as regulated entities for the purposes of Regulation 15A under the SEBI(FII) framework: (1) entities incorporated in jurisdictions requiring registrar filings; (2) entities authorised and regulated by a central bank; (3) entities authorised and regulated by a securities or futures commission; (4) members of recognised securities or futures exchanges or accountable self regulatory organisations; and (5) individuals or investment vehicles whose advisory function is managed by an entity meeting the foregoing criteria.

Mutual fund amendment regulations circulated for recipient funds to update compliance and recordkeeping accordingly.
SEBI's Investment Management Department circulated the SEBI (Mutual Funds) (Amendment) Regulations, 2004 to all registered mutual funds and the Association of Mutual Funds in India, forwarding the gazette-published amended regulations for their reference and records to ensure receipt of the regulatory text for compliance and recordkeeping.

Withdrawal of transfer cum demat facility announced, depositories directed to amend rules, notify participants and report implementation.
Depositories are instructed to amend their bye-laws, rules and regulations immediately to give effect to the withdrawal of the transfer-cum-demat facility; to notify and disseminate the change to their Depository Participants; and to communicate implementation status to the regulator, on the basis that pervasive dematerialised trading has rendered the facility redundant.

Recognition of foreign credit ratings allows bank guarantees rated by reputed foreign agencies to qualify as member liquid assets.
SEBI permits bank guarantees from banks rated by reputed foreign credit rating agencies to qualify as member liquid assets, modifying Clause 4(V)(A)(b) so that exposure limits on the trade guarantee fund and total liquid assets apply where a bank is not rated P1 (or P1+) or equivalent by either a domestic recognised credit rating agency or by a reputed foreign credit rating agency.

Derivatives exposure limits require mutual funds to back positions, set trustee approved limits, and disclose exposures.
Mutual funds may use derivatives solely for hedging or portfolio balancing; positions must not create leverage or short-sale exposures. All long derivative exposure must be backed by cash or equivalents and all short exposure by underlying stock. Boards of Trustees must predefine and approve maximum net derivatives exposure as a percentage of portfolio and per scrip/instrument limits, oversee risk containment, require notional value and gross position calculations (with no netting of reversals), perform worst case analyses, and ensure specified disclosure and regular reporting.

Monthly Cumulative Report format revised to require average AUM, investor counts and Fund of Funds data in monthly filings.
The circular amends the Monthly Cumulative Report format, requiring mutual funds to disclose average assets under management, total number of investors in schemes, and specific Fund of Funds data, and directs submission of the MCR in the revised format commencing with the first applicable monthly report after issuance. The amendment is issued under Regulation 77 and applies to all registered mutual funds and the industry association.

Certification requirement for mutual fund sales personnel mandates certified staff for sales and investor-facing roles; limited senior exemptions.
Personnel of mutual funds and asset management companies engaged in sales, marketing or investor-facing functions must complete an industry certification by the compliance deadline; thereafter only certified personnel may be engaged for those activities. Designated senior employees and certain senior agents/distributors meeting experience criteria are exempt from the certification test but must attend a required refresher course and submit a certificate of attendance; AMCs must notify qualifying exempt distributors from the roster as of the reference date.

Unique Client Code requirement: mutual funds must obtain and secure UCC for each scheme before trading.
Mutual funds must obtain a Unique Client Code (UCC) from the recognised stock exchanges for each scheme or plan where portfolios differ, provide the UCC only to the member broker through whom they trade, report compliance to the regulator by the prescribed communication channels and timelines, and obtain the UCC for any new scheme or plan before commencing trading on its behalf.

Issuance of Offshore Derivative Instruments regulated by amendment to FII regulations, updating notification and compliance framework.
Amendment to the regulatory framework governs the issuance of Offshore Derivative Instruments by registered Foreign Institutional Investors, revising the FII Regulations to address market efficacy; the amendment has been sent for notification in the Official Gazette and custodians are asked to inform concerned parties to ensure compliance with updated issuance and oversight requirements.

Bank participation in interest rate derivatives market permitted, limited to proprietary trading and subject to regulator directions.
SEBI permits specified banks to become exchange members for interest rate derivatives trading, subject to exchange governing body recommendation. Membership is restricted to proprietary dealings-banks may trade only on their own account-and banks are prohibited from acting as members or agents for clients in any exchange segment. Banks must abide by RBI and SEBI circulars and directions. Exchanges are directed to amend bye-laws, notify members, disseminate the provisions publicly, and report implementation to SEBI in the Monthly Development Report.

Bulk deal disclosure: brokers must report client, scrip, quantity and price immediately; exchanges publish same-day.
Brokers must disclose immediately upon execution the scrip name, client name, quantity of shares bought/sold and the traded price for transactions exceeding the specified percentage threshold; stock exchanges must disseminate this information to the public on the same day after market hours and amend bye laws and notify members to ensure implementation.

Shift from Trade for Trade Segment to Normal Rolling Segment directed for companies with established dual depository connectivity.
SEBI directed stock exchanges to shift listed companies that had established connectivity with both NSDL and CDSL on or before 30.09.2003 from the Trade for Trade Segment to the Normal Rolling Segment unless other specific grounds justified continuation in TFTS, and to report action taken in Section II, item 13 of the Monthly Development Report for January 2004.

Restrictions on inter-broker trading require brokers to deal with only one counterparty to reduce regulatory risk.
SEBI directs exchanges to prohibit brokers/sub brokers from dealing with brokers/sub brokers of the same exchange without prior exchange permission, permitting such dealings only with one counterparty after due diligence; limit proprietary dealings across exchanges to one counterparty after intimation; reiterate that a sub broker shall not be affiliated to more than one stock broker of the same exchange; require registration for cross exchange client dealings; and mandate immediate implementation, bye law amendments, member notification and reporting of implementation.

Interest rate futures on a notional decade bond allowed, cash settled and priced by a basket average YTM.
SEBI permits cash settled interest rate futures on a 10 year coupon bearing notional bond, priced as 100 minus the simple average YTM of a disclosed basket of at least three government bonds (maturities around nine to eleven years); Exchanges must disclose contract conventions, settlement formulas, and allow contracts up to twelve months with possible quarterly expiries.

Unique Identification Number requirement: intermediaries must obtain UIN with biometric enrolment or cease acting as intermediaries.
Specified intermediaries and their related natural persons must obtain a Unique Identification Number from the Designated Service Provider using the prescribed application channels; biometric impressions (left and right thumb and index) and a photograph must be submitted electronically, and applicants must provide true information. After allotment, they must notify changes in particulars to the MAPIN database within thirty days and ensure related persons obtain or apply for a UIN within thirty days; contraventions attract regulatory action under the Regulations.

Unique Identification Number requirement mandates biometric registration and ongoing reporting; non-compliance attracts regulatory action from intermediaries
SEBI designates NSDL as the Designated Service Provider and requires specified intermediaries and related persons to obtain a Unique Identification Number (UIN), with natural-person applicants providing electronic biometric impressions and a photograph; applicants must supply truthful information and face specified regulatory action for false statements. Post-allotment continuing obligations include notifying changes to the MAPIN database within thirty days and ensuring related persons obtain or apply for UINs within thirty days. Depositories must amend bye-laws, notify participants, publish the circular, and report implementation to SEBI.