Expected Loss based Rating Scale permitted for municipal bonds financing infrastructure to be used alongside standard rating scales.
SEBI permits Credit Rating Agencies to use an Expected Loss (EL) based Rating Scale, in addition to standardized rating scales and Probability of Default ratings, for rating Municipal Bonds issued to finance infrastructure assets; this directive is effective immediately and issued under Section 11(1) of the SEBI Act read with Regulation 20 of the CRA Regulations.

Investor charter obligations require RTAs to publish the charter, disclose monthly complaint data, and adopt SCORES and ODR.
RTAs must publish and display the updated Investor Charter, disseminate it to shareholders, and disclose monthly complaint data and resolution metrics on their websites in the prescribed Annexure B format by the specified monthly deadline. The Charter prescribes service timelines for investor requests, obliges transparent grievance redressal via SCORES 2.0 and SMARTODR ODR (including escalation and arbitration stages), requires protection of investor confidentiality, and takes immediate effect while rescinding the earlier circular and amending the Master Circular.

Internal audit composition for CRAs expanded to include Cost Accountants and DISSA-qualified auditors, effective immediately.
The audit team for registered credit rating agencies must be composed of at least a Chartered Accountant or a Cost Accountant and an information-systems auditor holding CISA, DISA, or DISSA; the amendment expands eligible qualifications and is effective immediately under statutory regulatory powers to protect investors and regulate the securities market.

Yield to price computation simplified using due dates for cash flows; centralized bond database required to disclose cash flow schedules.
Cash flow dates for interest, dividend and redemption payments on RFQ-traded non-convertible securities shall be based on due dates in the cash flow schedule and not adjusted for day count convention for yield-to-price computation. Issuers must submit a cash flow schedule (due date and payment date as per day count convention) at ISIN activation in the centralized corporate bond database and update any changes within one working day; the requirement covers prospective issuances and residual maturities of listed ISINs.

Certification requirement for AIF managers' key investment team extended, providing additional time for mandatory NISM compliance.
The AIF regulatory framework mandates that the key investment team of an AIF Manager include at least one person holding the prescribed NISM certification. SEBI has extended the timeline for obtaining the NISM Series-XIX-C certification for applicable existing and pending AIF schemes, with the extension taking immediate effect to facilitate compliance.

Disclosure of financial information in REIT offer documents strengthened; revised continuous disclosure, NDCF calculation and audit requirements enforced.
Revision of Master Circular Chapters 3 and 4 requires REIT offer documents to include audited historical financials, project wise operating cash flows, related party disclosures, capitalisation and debt histories, statements of net assets and total returns at fair value, and certified projections; combined financial statements for initial offers and consolidated statements for follow on offers must follow Ind AS with specified modifications. Pro forma and combined/carve out financial statements are required for material acquisitions/divestments and must be certified/audited per ICAI guidance. A detailed framework for computing Net Distributable Cash Flows at SPV/HoldCo and Trust levels and periodic continuous disclosure, audit, approval and website, investor redressal and borrowing related disclosures are prescribed.

InvIT disclosure rules updated: enhanced financial, proforma and NDCF reporting plus stricter audit and continuous disclosure obligations.
The circular revises Chapters 3 and 4 of the InvIT Master Circular to mandate expanded offer-document and continuous disclosure requirements: audited financial statements for three years (and stub periods), combined statements for initial offers, certified proforma financial statements when material acquisitions/divestments occur, and detailed audit, certification and peer-review requirements. It prescribes a multi-level framework for computing Net Distributable Cash Flows (NDCF), rules on inclusions/exclusions, retention limits, distribution policy and prohibitions on debt-funded distributions. Chapter 4 updates timelines, statement formats, comparative disclosures, audit/limited-review norms, website/grievance obligations and extra disclosures for borrowings.

Investor Charter publication requirement compels KRAs to disclose KYC services, rights, and grievance procedures publicly.
SEBI requires registered KRAs to publish an Investor Charter on their websites and prominently at offices, detailing KRA services (centralized KYC registration/modification, status tracking, solicited/unsolicited feeds, alerts, verification of KYC attributes and KYC status categories), data protection commitments, investor rights to privacy and record access, Do's and Don'ts, and a three-tier grievance redressal mechanism comprising direct KRA complaint with 21-day resolution, escalation via a centralized complaints system, and further dispute resolution through an online ODR portal. The requirement is issued under Section 11(1) of the SEBI Act.

Separate Business Unit permitting stock brokers to operate in GIFT IFSC subject to regulatory ring fencing and segregated accounts.
SEBI permits registered stock brokers to operate securities market related activities in GIFT-IFSC through a Separate Business Unit (SBU), qualifying branch, or subsidiary without specific SEBI approval. SBUs must engage only in IFSCA permitted activities, be subject to the concerned regulatory authority's framework, and be segregated and ring fenced from the broker's Indian securities market activities with separate accounts and segregated net worth. Exchange grievance mechanisms, Investor Protection Fund and SCORES will not apply to SBU clients.

Cybersecurity compliance thresholds revised: categorisation and exemptions updated, with HSM mandate for top-tier regulated entities.
The circular revises CSCRF classification thresholds and exemption rules, fixes an RE's category for the financial year based on prior year data, and prescribes that the higher applicable category applies where multiple thresholds are met. It specifies recategorizations and exemptions for stock brokers, DPs, IAs, RAs, KRAs, portfolio managers, AIF/VCF managers, MBs and RTAs, reallocates reporting authority for IAs and RAs to BSE Ltd., mandates a dedicated Hardware Security Module for MIIs and Qualified REs while permitting alternatives for lower categories subject to board approved risk assessment, and aligns cyber audits with prior CSCRF guidance.

Optional T+0 settlement cycle: timeline for QSB system implementation extended to later in 2025 by regulators.
Extension of the deadline for Qualified Stock Brokers to implement systems and processes enabling optional T+0 rolling settlement from the previously prescribed effective date to November 01, 2025; all other provisions of the December 10, 2024 circular remain unchanged and market infrastructure institutions must amend byelaws, implement the change and notify market participants.

ESG rating withdrawal rules refined: providers must follow business model specific withdrawal and disclosure protocols on exchanges.
Specifies business model specific withdrawal norms: subscriber pays ERPs may withdraw ratings only where no subscribers exist for that rating, must not withdraw ratings forming part of subscribed packages, must prevent future redistribution of withdrawn ratings, and may withdraw for non availability of BRSR; issuer pays ERPs face continuity conditions and bondholder consent prerequisites for withdrawal. Subscriber pays ERPs may restrict detailed rating rationales to subscribers but must publish specified minimal rating disclosures year wise on their websites; stock exchanges must prominently disclose ESG ratings and standardized metadata supplied by ERPs. Internal audit and governance committee requirements for Category II ERPs are deferred for an initial period, audit team composition is broadened, and standardized clarification and response protocols between rated entities and ERPs are prescribed while protecting proprietary methodologies.

Margin collection timelines aligned to settlement cycle; non-upfront margins must be collected by settlement day or penalties may apply.
Trading Members and Clearing Members must collect upfront VaR margins and ELM in advance of trade; all other margins must be collected by the settlement day. If pay-in is made by settlement day other margins are deemed collected and no penalty arises; failure by client to pay-in and by TM/CM to collect other margins by settlement day will attract applicable penalties.

Cut-off timings for NAV determination updated; new 3pm and online 7pm deadlines apply for repurchases in overnight schemes.
SEBI amends paragraph 8.4.5.4 to require AMCs to apply the closing NAV of the previous business day for repurchase applications received on or before 3:00 pm, and the closing NAV of the next business day for applications received after 3:00 pm; for online applications in overnight fund schemes a 7:00 pm cut-off applies. Business Day excludes days when Money Markets are closed. The amendment, introduced to facilitate upstreaming of client funds via pledged MFOS units, takes effect June 1, 2025.

Trading window closure: Immediate relatives of designated persons will have automated PAN ISIN freezes during financial results periods.
The circular extends automated trading-window restrictions to immediate relatives of designated persons by requiring a Designated Depository portal to collect and confirm PANs, names and demat details; companies must specify trading-window commencement and end dates and provide details by T 2, the depository will share data with exchanges and other depositories by T 1 and daily during closure, after which depositories will freeze PANs at ISIN level to block off-market encumbrances and stock exchanges will restrict on-market transactions; additions, deletions and exemptions must be effected within two trading days.

Specialized Investment Funds (SIF) now require standardised application forms and a prescribed ISID disclosure format for launch and approval.
Registered mutual funds must apply to establish a Specialized Investment Fund using the Annexure I application format and meet eligibility under Route 1 (sound track record) or Route 2 (alternate route relying on specified CIO and fund manager experience/AUM) with prescribed supporting documents and undertakings. The Investment Strategy Information Document (ISID) format in Annexure II mandates front-page product labelling, PRC disclosure for debt strategies, concise Section I highlights (objective, benchmark, frequencies, NAV, loads, expenses, timelines) and Section II detailed disclosures (asset allocation tables with specified instrument exposures, investment approach, benchmark justification, fund manager credentials, holdings and governance disclosures), together with due diligence and trustee confirmations and specified operational, disclosure and investor-protection timelines.

Minimum investment threshold for Specialized Investment Funds clarified; applies at PAN level with limited exception.
Interval scheme maturity provisions of the Mutual Fund Master Circular are disapplied to Interval Investment Strategies under SIF. The AMC must ensure an investor's aggregate investment across all SIF strategies at the PAN level meets the Minimum Investment Threshold of ten lakh rupees, except for mandatory AMC employee investments under the Master Circular's designated employee provision.

FPI disclosure threshold increased, expanding mandatory reporting scope for large investors with immediate effect.
The circular raises the size-based disclosure threshold for FPIs and ODI subscribers who, individually or with their investor group, meet the revised asset-under-management criterion in Indian equity markets, thereby expanding the population subject to additional reporting and transparency obligations. Amendments are made to specified sub-paragraphs of Part C and Part D of the FPI Master Circular; the changes come into force immediately and are issued under statutory powers to protect investors and regulate the securities market.

Standardized System and Network Audit Format required for market infrastructure institutions to harmonize audit reporting and unique observation IDs.
Standardizes the format for System and Network audits of Market Infrastructure Institutions by prescribing a uniform audit-report template covering auditee/auditor details, audit scope and methodology, IT-environment overview, control-wise compliance matrices, regulatory-requirements checks for IT resilience, corrective-action reporting and documentation paths. Mandates assignment and use of a prescribed unique observation ID for each finding to enable traceability and consistent open-observation reporting across MIIs, and requires MIIs to implement systems and amend rules as necessary for applicability to the relevant audit period.

PaRRVA verification framework enables use of independently verified risk return metrics in regulated claims following prescribed standards.
The circular creates a regulatory framework recognising certain Credit Rating Agencies as PaRRVA and specified Stock Exchanges as PaRRVA Data Centres (PDCs), prescribing eligibility criteria, a two stage recognition process with implementation and site visit conditions, and clear principal-agent roles where PaRRVA defines methodology and retains responsibility while PDCs host and process verification systems and data. It mandates record retention, presentation guidelines and disclaimers for verified risk return metrics, establishes an Oversight Committee for governance and audits, and enables amendments allowing regulated persons to use PaRRVA verified metrics in claims subject to SEBI standards and enforcement.