Market disclosure obligations require exchanges to publish comprehensive member, client and contract trading data and disciplinary information online.
SEBI mandates that commodity derivative exchanges publish on their websites daily anonymous top-ten client positions, hedgers' delivery intent, pre-market disclosure of algorithmic trading share, ten-day post-settlement pay-in/pay-out for top clients, monthly member proprietary position percentages and margins, member data in a prescribed format, contract life-cycle trading metrics per Annexure-II, quarterly settlement fund breakdowns, lists of approved surrenders and detailed disclosures for suspended or expelled members; exchanges must amend rules, notify members and report implementation to SEBI.

Portfolio management services restriction continues: PMS remains prohibited in commodity derivatives pending regulatory review and dissemination.
Portfolio management services (PMS) remain prohibited in the commodity derivatives market pending SEBI review through the continuance of existing FMC directives; PMS is therefore not permissible. The circular takes effect from its stated date, supersedes earlier FMC directives on PMS, is issued under Section 11(1) of the SEBI Act for investor protection and market regulation, and requires commodity exchanges to notify members and publish the circular on their websites.

Spread margin benefits: special margin shall not be levied on spread trades, with the exemption retained and continued by regulator.
The circular affirms that the erstwhile FMC circulars prescribing that special margin shall not be levied on spread trades shall continue in force beyond the transitional repeal period, and directs exchanges to notify members and disseminate the provision on their websites.

Enhanced supervision of stock brokers: exchanges must monitor client funds, enforce account nomenclature and trigger alerts for misuse.
Stock Exchanges and Depositories must enforce prescribed account nomenclature and prompt reporting by brokers, implement a weekly-data based monitoring mechanism calculating reconciliation metrics (G, H, I, J) to detect misuse of client funds, and act on alerts by seeking clarifications, conducting inspections and initiating remedial steps. Brokers must comply with internal audit rotation and reporting rules, submit standardized financial statements and indicators, upload monthly client-wise fund and securities balances to exchanges, follow rules on pledging client securities, and observe prescribed running account settlement and PAN disclosure requirements.

Re issuance of legacy FMC norms: exchanges must disclose terminal disablements, set delivery timelines and collect extreme loss margin.
SEBI re issues FMC norms requiring exchanges to disclose member terminal disablements quarterly, set and publish timelines for submission and modification of delivery intentions, and determine and disclose location premium/discount prior to contract launch. SEBI clarifies that extreme loss margin must be collected upfront alongside initial margin and that the specified penalty structure for short collection/non collection applies from T day to ELM as well as initial margin. Exchanges must notify members and publish these provisions on their websites.

Investor Protection Fund rules clarified: trust governance, funding sources, claim eligibility and disbursement procedures updated.
SEBI prescribes that the Investor Protection Fund be administered by a Trust with specified composition and SEBI approved trustee appointments; funds must be segregated, disclosed as related party transactions, and funded by specified portions of exchange penalties (excluding settlement penalties after administrative cost deduction) and a share of turnover fees. Exchanges must invite claimant filings for a minimum 90 day specified period by newspaper and website notice; only retail client claims are eligible, claims within three years after the period may be processed at the Trust's discretion, and eligibility, determination and disbursement procedures are governed by Trust decisions, arbitration mechanisms and prescribed compensation limits with SEBI review.

Regulatory harmonization for commodity brokers aligns commodity market broker rules with securities norms and mandates exchange compliance.
The circular harmonises commodity derivatives broker regulation by classifying legacy FMC instruments into three parts-those repealed and replaced by applicable securities regulator circulars, those retained as commodity specific norms, and those repealed-covering client funds segregation, running account settlement, KYC/account opening, client communications, contract notes, audit and inspections, outsourcing and complaint redressal. Exchanges must amend bye laws, monitor compliance via half yearly audits and inspections, continue existing penalties subject to consultative revision, and report implementation to the regulator; the circular is issued under the regulator's powers to protect investors and regulate markets.

Delivery mechanisms regulated to mandate tendering, allocation, settlement timelines and penalties for delivery defaults in commodity futures.
Exchanges must operate staggered delivery with a tender period, permit marking of delivery intentions, allocate delivery by random methodology with preference to signalled buyers, and complete pay-in/pay-out within prescribed working days. Open positions at expiry become compulsory delivery settled at the Final Settlement Price. Early delivery and early pay-in mechanisms allow matching and deposit of certified goods with settlement timelines; delivery defaults incur penalties combining a percentage of settlement price and replacement cost, with specified apportionment and disciplinary measures. FSP is determined by averaging available polled spot prices per a fallback hierarchy, and exchanges may advance expiry if the physical market is closed.

Consolidated Account Statement disclosure requires scheme cost, gross distributor commission and average expense ratio in half yearly statements.
Consolidated Account Statement requirements now mandate that each CAS disclose the total purchase value/cost of investment for each scheme, and that half yearly CAS additionally disclose the gross commission paid by AMCs/Mutual Funds to distributors in absolute terms and the scheme's average Total Expense Ratio for the applicable plan(s). Commission includes direct monetary payments and non monetary benefits and must be shown as gross, without netting distributor costs. These half yearly CAS disclosures apply to investors except those with no holdings and where no commission was paid during the period, with an indicative format provided.

Permission for trading in futures contracts allows exchanges to approve and modify specifications subject to prior notice, regulator oversight.
Exchanges must submit proposals for new or renewed futures contracts with complete check list information; continuous trading approvals are conditional on compliance with exchange rules, fixed contract specifications and launch calendars, open position and price fluctuation limits, daily mark to market settlement, delivery procedures, and prevention of speculative cornering. Certain specification parameters may be modified at exchange level (e.g., ticker, trading unit, tick size, delivery centres, quality tolerances) provided exchanges give prior notice and reasons to market participants and the regulator; substantive changes or re launches require prior SEBI approval.

Settlement Guarantee Fund norms maintained where unmodified, with exchanges required to notify members and publish continued provisions.
Settlement Guarantee Fund requirements, stress testing procedures for SGF adequacy, and Base Minimum Capital norms previously prescribed for national commodity derivatives exchanges continue in force to the extent not modified by subsequent regulatory amendments; recent changes removing the annual cap on exchange contributions to SGF and revising BMC for members supersede inconsistent legacy provisions. Exchanges must notify members and disseminate the continued provisions on their websites.

Unique Client Code requirement makes PAN the mandatory identifier for commodity derivatives trading, with penalties for noncompliance.
Mandatory implementation of a Unique Client Code (UCC) requires members of commodity derivatives exchanges to collect, verify and upload clients' Permanent Account Number (PAN) as the sole identification for trading, subject to specified exemptions. Members must verify PAN with originals and the Income Tax Department database, retain copies, update client particulars monthly within seven working days of the following month, and exchanges must maintain a seven year historical database. Noncompliance attracts a trade penalty transferred to the Investor Protection Fund and potential member suspension for delayed uploads.

Transmission of securities procedures standardized; exchanges and depositories must amend rules and comply within the prescribed period.
The circular mandates amendment of prior transmission guidance and directs stock exchanges and depositories to update listing agreements, byelaws and rules to implement simplified transmission procedures. Annexure A sets documentary requirements for physical securities transmission: nominee transmission requires a signed request, attested death certificate and PAN (with limited substitution); transmission without a nominee requires an affidavit of legal heirs and, depending on holding value, either succession documentation or specified alternatives such as NOC(s) and an indemnity bond.

Mutual funds: SEBI master circular consolidates filing, disclosure, governance, valuation, risk management and investor protection rules.
SEBI's Master Circular (as at Sept 14, 2016) consolidates mutual fund regulation: SIDs/SAIs and KIM formats, filing and update procedures, timelines and SEBI observation validity; governance rules including independent trustees, audit/valuation committees and systems audits; mandatory disclosures and reporting (monthly portfolios, half yearly financials, trustee reports, remuneration, distributor commission); operational rules on NFO periods, direct plans, single plan expense structures, minimum AUM and investor concentration limits; constrained conditions and procedures for imposing restriction on redemption; and standardised valuation, NAV publication and risk management/stress testing requirements.

Restrictions on promoters' share transfers and directorships after compulsory delisting until exit offers are provided to public shareholders.
Where the fair value is positive, promoters' equity shares and corporate benefits shall be frozen and transfers (sale, pledge, etc.) blocked until promoters provide the exit option to public shareholders as certified by the recognised stock exchange; promoters and whole time directors are barred from serving as directors of any listed company until that exit option is effected, with exchanges and depositories coordinating compliance and SEBI empowered to take enforcement action for non compliance.

Margin collection compliance: penalties for members failing to collect client margins within prescribed timelines and reporting requirements.
Requires members to collect specified margins (including initial, ELM, mark to market, special/additional and delivery margins), with initial margins payable upfront and other margins collectible within T+2 working days; members must report short collection/non collection to the Exchange on T+5. A graduated per day penalty applies per client shortfall, higher rates for larger shortfalls, with penalties for initial margin shortfalls applying from T. Repeated defaults (three or more instances in a month) invoke a 5% shortfall penalty from the fourth instance. Exchanges collect penalties monthly, credit proceeds to the Investor Protection Fund, inspect compliance and may levy up to 100% penalty for incorrect reporting.

Due Date Rate fixation requires committee-led spot price polling, audio recording and Board approval with preservation and reporting obligations.
Regional Commodity Derivatives Exchanges must fix the Due Date Rate through a board-level DDR Committee (majority non-trading members) that establishes a 15-member Spot Price Polling Panel from upcountry entities. Spot prices are polled by telephone with speaker on, recorded and retained for six months; polling occurs once daily during peak hours and the average of the last three days' available spot prices (not earlier than seven days before due date) is used. The Committee recommends DDR to the Board, which must approve or record reasons for modification; DDR is announced and records sent to the regulator.

Daily Price Limits for commodity derivatives use staged relaxations and VWAP-derived first-day base pricing.
Daily Price Limits for non-agricultural commodity derivatives are set in tiered slabs with category-specific initial and enhanced slabs; steel has a two-slab structure with a cooling-off-triggered enhancement, while gold and other non-agricultural commodities use a three-slab mechanism with an immediate first enhancement and a cooling-off-triggered second enhancement. Exchanges may relax limits further if international reference markets move beyond the aggregate DPL but must notify surveillance with justification. For a contract's first trading day the base price for DPL is derived from VWAP of opening trades and governs the day's limits; exchanges may prescribe narrower limits and must update rules, disseminate changes, and report implementation to the regulator.

Transaction charges regulation caps differential and mandates post-facto, incremental slab charging to ensure fair, non-discriminatory markets.
Exchanges may levy varying transaction charges across commodities and contracts provided the highest-to-lowest charge within any turnover slab does not exceed 1.5:1; concessional slab rates apply only to incremental turnover and charges must be levied on a post-facto basis. Revisions must preserve system capacity and risk management, avoid selective treatment, artificial demand or market irregularities, and be applied uniformly, fairly and transparently. Exchanges must amend bye-laws, notify members, disseminate on websites and report implementation to the regulator.

Spot Price Polling Mechanism requires exchanges to publish polling methods and daily participant prices with oversight.
SEBI requires commodity derivatives exchanges to have a documented spot price polling policy, display the polling mechanism and contract-specific details online, and disclose whether polling is outsourced. Exchanges must publish coded participant details (location, profession, quoted price, timestamp) daily and retain records for three years post-expiry. They must increase sample size during the last 15 days, review participants monthly to identify and discipline unrealistic pollers, provide a feedback window with audit trail and time bound redressal, amend bylaws, notify brokers, and report implementation to SEBI.