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.

Disablement of trading member: immediate freeze of accounts and expedited forensic audit to protect non-defaulting clients.
On triggering early warning signals or specified criteria indicating likely default by a Trading Member/Clearing Member, the initiating Stock Exchange shall seek explanations, conduct a limited-purpose joint inspection, and may direct disablement of the trading terminal. Exchanges shall notify clearing corporations, depositories and banks; depositories shall freeze demat accounts and suspend POAs; banks shall freeze member bank accounts on exchange instruction. CMs/CCs shall square off or liquidate open positions, encash collateral and invoke guarantees, while a forensic audit and asset-liability assessment are conducted to enable interim settlement of client claims and subsequent default proceedings under bye-laws.

Compliance deadline extension for REITs and InvITs grants an additional month for regulatory filings and compliances.
SEBI amended earlier relief to grant REITs and InvITs an additional one-month extension for regulatory filings and compliances for the period ending March 31, 2020 beyond previously extended timelines, effective immediately, and directed stock exchanges to notify and disseminate the circular.

Relaxation of compliance timelines extended for depository participants and RTAs, allowing backlog clearance after exclusion period.
The circular extends regulatory timelines for DPs and RTAs by treating the period from March 23, 2020 to July 31, 2020 as a period of exclusion for specified compliance activities and allows a 15 day period after July 31, 2020 to clear backlogs. Extended activities include processing demat request forms by issuers/RTAs and participants, submission of half yearly Internal Audit Reports for the half year ended March 31, 2020, redressal of investor grievances, transmission of securities, and closure of demat accounts. Reporting deadlines for AI/ML disclosures by Trading Members and Clearing Members are likewise extended, with all other prior conditions remaining in force.

Collection of stamp duty on AIF units: RTAs to collect for non-exchange transactions; AIFs must appoint RTAs and safeguard funds.
Registrars to an Issue and/or Share Transfer Agents are designated as collecting agents for stamp duty under the Indian Stamp Act for AIF unit transactions outside recognised exchanges or depositories; RTAs already appointed must collect stamp duty, and AIFs without RTAs must appoint them promptly. Until appointment, AIFs shall hold applicable stamp duty in a designated bank account for transfer to RTAs for onward remittance; dematerialised transactions through exchanges or depositories continue to be subject to collection by those entities.

Extension of compliance timeline for portfolio manager guidelines; provisions now deferred and will apply from the revised effective date.
SEBI has deferred the applicability of the Guidelines for Portfolio Managers by a further three months, making the provisions of the earlier circular applicable with effect from October 01, 2020. The deferment responds to market conditions and requests from portfolio managers and is issued under Section 11(1) of the SEBI Act, 1992, coming into force with immediate effect; the circular is published on the SEBI website under relevant categories.

Relaxation of meeting gap extended; boards and audit committees must still meet at least four times annually.
Relaxation of the maximum permitted interval between consecutive board and Audit Committee meetings is extended to cover meetings up to July 31, 2020, while requiring boards and audit committees of listed entities to hold at least four meetings per year; stock exchanges must notify listed entities and disseminate the circular, which takes immediate effect and is issued under SEBI's regulatory powers subject to the Companies Act and related rules.

Extension of filing deadline for Annual Secretarial Compliance Report to July 31 due to COVID 19; exchanges to notify.
Extension of timeline for submission of the Annual Secretarial Compliance Report by listed entities is granted for one additional month to July 31, 2020, following representations received and continuing operational difficulties due to the COVID 19 pandemic. The Circular is effective immediately and requires Recognized Stock Exchanges to notify and disseminate the extension to all listed entities that have issued specified securities.

Order-to-trade ratio limits for algorithmic trading: higher OTR slabs allowed with deterrent penalties and temporary cooling-off.
SEBI allows stock exchanges to introduce higher OTR penalty slabs with deterrent incremental penalties and requires a cooling-off measure whereby a member recording three instances of OTR at or above the higher threshold within a rolling thirty-day period is prohibited from placing orders for the first fifteen minutes of the next trading day; exchanges must amend their byelaws, rules or regulations as needed.

Extension of filing deadline for listed entities' financial results due to COVID-19; regulator grants further compliance relief.
The timeline for submission of quarterly and annual financial results for the period ending 31 March 2020 under the Listing Obligations and Disclosure Requirements is extended by one month; the same extension applies to entities with listed non convertible debt instruments and similar securities for half yearly and annual submissions. The circular takes immediate effect and stock exchanges are directed to notify and disseminate the extension, issued under the regulator's statutory powers and applicable listing regulations.

Temporary relaxation in FPI document processing extended under regulatory authority; DDPs and custodians must notify clients.
Temporary relaxation in processing of documents pertaining to FPIs is extended to August 31, 2020, with all other terms and conditions of the March 30, 2020 circular remaining unchanged; DDPs and custodians are required to notify their FPI clients and to continue applying the authorized relaxed document acceptance and verification measures under the regulator's powers to protect investors and accommodate AML record keeping flexibility.