Pledge-based margin mechanism required; temporary parallel title-transfer allowed before mandatory migration to depository pledges.
Members must migrate margin obligations to a pledge / re-pledge mechanism in the depository system, with a temporary allowance for parallel acceptance of collateral by title transfer during a limited transition; funded stocks under margin trading should preferably be held by pledge and existing 'Client Margin / Collateral' demat accounts must be closed within the prescribed transition period.

Regulatory timeline extensions for depository participants and RTAs allow additional time to meet specified compliance requirements.
SEBI extends compliance timelines for DPs, RTAs and KRAs due to the COVID 19 disruption, designating a period of exclusion for processing demat requests, transmission of securities, closure of demat accounts and investor grievance redressal, and allowing a short post exclusion window to clear backlogs. It also extends submission deadlines for half yearly Internal Audit Reports and annual systems audits for DPs, while all other conditions of prior circulars remain applicable and depositories must notify participants and publish the circular.

Regulatory timeline extension for compliance obligations permits delayed reporting and audits due to the pandemic with continued conditions.
SEBI extended deadlines for specified compliance obligations of trading members, clearing members and depository participants due to COVID 19, postponing reporting and audit deadlines (including client funding reporting, AI/ML reporting, internal and system audits, net worth certificates, call recording maintenance and Cyber Security & Cyber Resilience Audit) with several extensions running until September 30, 2020; all other conditions of earlier circulars continue and market infrastructure entities must notify members.

Extension of filing deadline for quarterly financial results granted, easing timeline between successive reporting periods.
SEBI extended the timeline under Regulation 33 of the LODR Regulations for submission of financial results for the quarter/half year/financial year ended 30th June 2020 to address the shortened interval between successive reporting deadlines; the extension is effective immediately and stock exchanges are directed to notify and disseminate the circular to all listed entities.

Relaxation of takeover and buy-back procedures extended to cover open offers and tender buy-backs opening through year-end.
SEBI extended one-time procedural relaxations for open offers under the Takeovers framework and for buy-back by tender offer, maintaining the same scope of eased enforcement for open offers and tender-offer buy-backs that open through December 31, 2020, in response to market representations and issued under SEBI's regulatory powers.

Recording of encumbrances required in depository system; participants subject to concurrent audit and off system encumbrances prohibited.
Depositories must implement a system to capture and record all types of encumbrances specified under Regulation 28(3) of the SEBI Takeover Regulations, adopting processes similar to those for NDUs; freeze and unfreeze instructions by Participants will be subject to 100% concurrent audit, and Depository Participants must not facilitate or be party to any encumbrance outside the depository system.

Relaxations for rights issue timelines extended, providing one time procedural relief under securities regulations for eligible issues.
SEBI extended previously granted one time procedural relaxations under the ICDR Regulations for rights issues, making those relaxations applicable to rights issues opening within the newly specified extended period; the relief is procedural, directed to listed entities, issuers proposing to list specified securities and market intermediaries, and issued under SEBI's statutory market regulation powers.

Reporting of Code of Conduct violations to stock exchanges required; revised format and remittance to investor protection fund mandated.
Listed companies, intermediaries and fiduciaries must promptly inform the stock exchange(s) of any violations of the Code of Conduct under the PIT Regulations using the revised Annexure A reporting format, which collects details of the reporting entity, designated person or immediate relative, transaction particulars, dates of Regulation 7 intimations (where applicable), observed violations, actions taken, reasons recorded and prior instances. Any amounts collected for such violations must be remitted to SEBI for credit to the Investor Protection and Education Fund by online transfer or demand draft, with transfer particulars reported in the Annexure A.

Trading window exemptions extended to Offer for Sale and Rights Entitlements when conducted under board-specified framework.
SEBI clarified that trading window restrictions under the Prohibition of Insider Trading regime shall not apply to Offer for Sale (OFS) and Rights Entitlements (RE) transactions when conducted in accordance with the framework specified by the Board. The amendment supplements existing exemptions under Schedule B and Regulation 9. Stock exchanges must notify listed companies and publish the circular; the directive is issued under SEBI's regulatory powers and is effective immediately.

RFQ platform usage requirement increases exchange liquidity by mandating mutual funds to route a portion of corporate bond trades via RFQ.
Mutual funds must route a prescribed portion of secondary market corporate bond trades through the stock exchange RFQ platform in one to many mode (with a rolling three month average calculation); trades where a mutual fund is on both sides must use RFQ one to one mode, and inter mutual fund executions on RFQ one to many count toward the requirement. Debt scheme disclosures must be made fortnightly within five days of each fortnight and additionally include the yield of each instrument in the prescribed format.

Margin recognition for early pay in positions permits treating margin exemption or early paid in goods value as supporting margins.
For calculating residual losses under the stress testing methodology, where clients or brokers have given early pay in and margin exemptions are granted, Clearing Corporations may consider the margin exemption granted or the value of the early paid in goods, whichever is lower, as the margins supporting those positions.

Upfront margin verification required - exchanges to monitor EOD and peak client margins with phased compliance and penalties
Clearing Corporations shall send multiple intra-day snapshots and client-wise margin files specifying EOD and peak margin obligations; members must report margins collected at EOD and peak during the day. Verification compares EOD obligation against EOD client margin available and peak obligation across snapshots against client peak margin available; the higher shortfall is used for penalty. Exchanges/Clearing Corporations will verify member books weekly. Adoption of peak-margin comparison is phased, and members must show any remaining peak obligation during the phase is funded from their own funds and not from other clients.

Eligibility criteria repeal for selection of underlying commodity futures removes turnover ranking requirement and requires exchanges to amend rules.
The circular repeals the eligibility requirement that underlying futures be among the top five contracts by trading turnover for listing options on commodity futures, while retaining all other prior product-design provisions. The repeal is effective immediately; stock exchanges must amend bye-laws, notify brokers, publish the change, and report implementation to the regulator. The directive is issued under Section 11(1) to protect investors and regulate the market.

Exit option to dissenting unitholders: structured tendering, escrow safeguards, lead manager due diligence, and prescribed exit price benchmarks.
An Acquirer required to provide an exit option must appoint registered lead manager(s) to send a Letter of Offer to all dissenting unitholders, file the LoF and due diligence certificate with the stock exchange(s), create an escrow (cash and/or bank guarantee) before tendering, conduct a five-working-day tender commencing on the seventh working day from Date of Intimation, pay accepted unitholders within three working days of tender close, and determine the exit price as the highest of prescribed benchmarks or a valuation where units are not frequently traded; proportional acceptance is required to maintain minimum public unitholding.

Exit option mechanism for dissenting unitholders under SEBI InvIT Regulations: prescribed process, valuation benchmarks and escrow safeguards.
Regulation 22(5C) and 22(7) require an acquirer to provide an exit option to dissenting unit holders; the circular prescribes appointment of registered lead manager(s) to prepare and disseminate a Letter of Offer, conduct due diligence and file certificates, use stock-exchange tendering and settlement mechanisms, create escrow by cash and/or bank guarantee, follow specified timelines for notice, voting, tendering and payment, compute the exit price by defined market and valuation benchmarks, and ensure proportional acceptance where public unitholding minima would otherwise be breached.

Listing financials relaxation - issuers may use Dec 31, 2019 financials for imminent NCD/NCRPS/CP listings due to audit delays.
SEBI permits listed issuers who issued NCDs, NCRPS or CPs on or after July 1, 2020 and intend to list them on or before July 31, 2020 to use available financials as of December 31, 2019 for listing purposes, addressing delays in finalising annual accounts for the year ending March 31, 2020. The relaxation is subject to the SEBI ILDS and NCRPS Regulations, related circulars, and the Companies Act, 2013, and stock exchanges must notify and disseminate the circular.

Valuation requirement for Market Linked Debentures now mandates appointment of an AMFI appointed valuation agency for issuer compliance.
Valuation of Market Linked Debentures must be carried out by an AMFI appointed valuation agency; issuers are required to appoint such a third party valuation agency, modifying paragraph 4(f)(i) of the MLD guidelines to replace the previous Credit Rating Agency valuation requirement in light of restrictions on CRA activities.

Commodity derivatives market rules consolidated: trading, product eligibility, risk management, position limits and disclosure regimes.
SEBI's Master Circular consolidates commodity derivatives circulars and prescribes operational rules (trading hours, transaction charges, spot price polling, UCC/PAN, client code modification), product governance (eligibility, oversight committees, product reviews), market integrity and risk management (DPLs, position limits, hedge policies, LES, margining and SGF), participant conditions (mutual funds, AIFs, EFEs, PMS), warehousing and delivery norms, and technology, surveillance and cyber resilience requirements, while noting original circulars prevail on inconsistency.

Shareholding limits for IFSC stock exchanges tightened; parent exchanges must retain majority ownership and certain entities need board approval.
An amendment requires that any Indian or foreign recognised stock exchange may form a subsidiary to operate in an IFSC with the parent exchange retaining majority paid-up equity; remaining equity may be offered to others subject to limits on individual or concerted holdings and applicable law. Certain market and financial institutions may acquire larger stakes only with prior approval of the Board, and recognised exchanges must comply with Regulation 19 and Regulation 20 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.

Relaxation of ILDM compliance extended: reporting timelines for municipal debt issuers moved to a new July deadline.
The circular modifies clause 7 of SEBI's earlier March 23, 2020 circular to extend timelines for submission of the investor grievance report, financial results and accounts maintained by issuers under the ILDM Regulations, setting a new deadline of July 31, 2020, and directs stock exchanges to notify listed municipal debt issuers and disseminate the circular, effective immediately under SEBI's regulatory powers.