Dedicated fund manager optional for commodity and overseas mutual fund schemes, subject to expertise and board oversight.
Appointment of a dedicated fund manager for commodity-based mutual funds and for schemes making specified overseas investments is optional; appointed fund managers must have adequate expertise and experience to manage commodities or overseas securities respectively, and the AMC Board is responsible for ensuring compliance and periodic reporting to trustees.

Nomination requirement for jointly held mutual fund folios made optional under the revised compliance framework.
The nomination requirement for mutual fund unit holders is made optional for jointly held mutual fund folios. The circular departs from the earlier requirement that existing individual unit holders, whether holding units solely or jointly, had to either submit nomination details or opt out of nomination by the prescribed deadline, failing which the folios could be frozen for debits. All other nomination-related requirements remain unchanged.

Relaxation in intimation requirement allows direct filing of specified PPM changes with SEBI and exempts LVFs with CEO undertaking.
SEBI permits specified changes to AIF Private Placement Memoranda to be filed directly with SEBI rather than through a merchant banker, enumerating eligible PPM sections and routine updates in Annexure A. Large Value Funds for Accredited Investors are exempted from the merchant banker requirement but must file changes with a CEO and Compliance Officer undertaking in the Annexure B format, confirming due diligence, regulatory compliance, and adequacy of disclosures.

Encumbrance on equity enabling investee debt: allows certain AIFs to encumber equity to facilitate infrastructure project borrowing.
Category I and Category II AIFs may encumber equity holdings in investee companies only to facilitate borrowing by those investee companies for development, operation or management of infrastructure projects listed in the Harmonised Master List. Permission is conditional on explicit PPM disclosure for new schemes, continuity rules tied to prior disclosure and investor consent, restrictions that borrowings be used solely for the stated infrastructure purposes, encumbrance duration not exceeding scheme residual tenure, prohibition on encumbering foreign investees, exclusion of guarantees, compliance with foreign investment norms where applicable, and adherence to implementation and compliance reporting standards.

Dissolution period flexibility for alternative investment funds allows in specie distribution or extended liquidation subject to investor consent.
AIFs may enter a defined dissolution period or distribute unliquidated investments in specie subject to at least seventy five percent investor consent by value and specified procedures. Before consent, the manager must arrange bids aggregating at least twenty five percent of the consolidated value of unliquidated investments and disclose tenure, investment details and indicative bid ranges with valuations by two independent valuers. If the minimum bid threshold is met, dissenting investors may exit from the bid; if not met the AIF may still seek 75% investor consent to enter dissolution. Valuation for benchmarking is the bid value if the threshold is met or one rupee if not, manager performance is reported separately, and remaining unsold assets are mandatorily distributed in specie at dissolution end.

Fit and Proper disclosures on contract notes shifted to regulatory reference URLs, enabling streamlined compliance and bylaw amendments.
SEBI removes the requirement to publish the full text of Regulation 19 on contract notes; in post listing cases, contract notes may instead include a reference to the applicable fit and proper provisions by providing a URL/weblink to Regulation 19 and 20. Stock exchanges must amend bye laws, notify members, disseminate the change on their websites, and report implementation in their Monthly Development Report.

Cross margin extension allows offsetting positions with different expiries under revised spread margins and exchange monitoring.
Extension of cross margin to offsetting derivative positions with differing expiry dates modifies spread margin rates for correlated index-index and index-constituent positions; higher spread margins apply when expiries differ while existing lower margins remain for same-expiry positions. Qualification for index-constituent cross margin requires that all constituent futures share a common expiry. The reduced spread margin is revoked at the start of the earlier-expiring leg when expiries differ. Exchanges and Clearing Corporations must monitor cross margin activity and all other cross margin requirements continue to apply.

Private Placement Memorandum audit standardization requires standardized reporting and online submission via SEBI portal.
AIFs must carry out an annual Private Placement Memorandum (PPM) Audit Report and submit it to trustees/boards, managers and SEBI within the Master Circular timelines. SEBI mandates a standardized reporting format, to be hosted by AIF associations, and requires online submission via the SEBI Intermediary Portal. Audit of specified PPM sections-Risk Factors; Legal, Regulatory and Tax Considerations; Track Record of First Time Managers; Illustration of Fees and Expenses; and Glossary and Terms-is optional. The format will be reviewed periodically by the pilot SFA in consultation with SEBI and revisions published by associations.

Aadhaar e-KYC Authentication: authorised entities may be onboarded as sub-KUAs to provide investor KYC authentication services.
Specified entities are authorised to use Aadhaar e-KYC authentication services as sub-KUAs for resident investor KYC in the securities market. These entities must be onboarded as sub-KUAs through KUAs, follow the onboarding and operational processes prescribed in the KYC master circular and by the authentication provider, and comply with the Prevention of Money Laundering Act framework and related notifications. Registered intermediaries and exchanges must recognise and facilitate integration of these sub-KUAs and ensure adherence to the prescribed procedures.

T+0 rolling settlement optional beta launched to shorten settlement timelines while preserving surveillance and risk controls.
Introduction of an optional Beta T+0 rolling settlement alongside T+1 for a limited set of 25 scrips and a limited number of brokers; all investors may participate if they meet MIIs' timelines, processes and risk requirements. Surveillance measures applicable to T+1 apply to T+0. Trading will be one continuous session; T+0 prices will be excluded from index and settlement price computation; no netting of pay-in/pay-out obligations between T+1 and T+0. MIIs must publish operational guidelines, FAQs, lists of scrips and brokers, provide fortnightly progress reports, implement systems and amend rules as required.

Safeguards for dematerialised securities transfers require DP verification and DIS issuance limits to prevent unauthorised transfers.
Measures require DPs to prohibit pre signed or blank DIS, cancel unused DIS upon loss notification, limit and condition issuance of loose DIS to in person signing, and verify signatures and transaction authenticity. For inactive/dormant accounts, replacement DIS booklets must be delivered to registered addresses and authorised by a Compliance Officer; mandatory recorded phone verification of BOs and senior authorisation are required before transfers. Active accounts face mandatory verification when all holdings across multiple ISINs are transferred, with verification details recorded and senior authorisation obtained.

FPI concentration exemption limits disclosure obligations where majority Indian equity is in a corporate group without an identified promoter.
SEBI exempts FPIs from additional disclosure obligations where majority Indian equity AUM is concentrated in a corporate group whose apex company has no identified promoter (with Depositories publishing such apex companies), provided the FPI's group holding excluding the apex company stays below the concentration threshold and the composite holdings of eligible FPIs in the apex company remain below a capped cumulative limit. Custodians and Depositories must track and publicise utilisation of the capped limit daily. If the capped limit is met, prospective investments by such FPIs must be realigned within a short trading-window or the FPIs must make the mandated additional disclosures, provided the capped limit persists through that window.

Aadhaar e KYC authentication permitted for newly notified reporting entities as sub KUAs enabling securities market KYC onboarding.
Permission is granted for specified reporting entities to undertake Aadhaar authentication as sub-KUA for customer on boarding in the securities market, subject to compliance with applicable privacy and security standards and the procedural framework for e KYC. These entities must follow the processes set out in SEBI's Master Circular on KYC and any UIDAI prescriptions, and KUAs are to facilitate their on boarding as sub KUAs to provide Aadhaar authentication for KYC purposes.

Repeal of grandfathering for excess private placements rescinds earlier refund relief and imposes a limited transition period.
SEBI has rescinded prior circulars that allowed issuers who issued securities to more than the permitted number of investors (over 49 up to 200) to avoid penal action by offering a refund option; the repeal becomes effective six months from this circular, without prejudice to prior actions. The relief remains available only to issuers who complete required procedures and submit the prescribed certificate within the six month transition; thereafter such cases will be dealt with under extant applicable laws and stock exchanges must disseminate the circular.

Simplified Offer Documents: extended compliance timeline allows phased transition and mandatory updation with website disclosure.
SEBI extends timelines for implementation of the simplified format for SID/KIM/SAI: updated formats apply from June 1, 2024; draft or recently filed SIDs may use the old format if updated per SEBI timelines; existing SIDs must be updated by June 30, 2024 with data as of May 31, 2024. The half yearly update for the period ending March 31, 2024 may be completed by June 30, 2024. All revised SIDs must be published on SEBI, AMFI and AMC websites within the prescribed timelines.

Qualified Stock Broker designation expanded to include compliance, grievance redressal and proprietary trading criteria-affects annual obligations.
The QSB framework is expanded by adding proprietary trading volumes, compliance score, and grievance redressal score to the existing designation parameters. Brokers' percentage shares in each parameter are compared to aggregate industry totals and threshold rules determine QSB status; separate cutoffs for compliance and grievance scores permit designation of a limited number of brokers. Designations are updated annually based on year end values, delisted brokers remain subject to enhanced obligations for a further transition period, voluntary QSB enrollment is permitted, and stock exchanges must publish lists and amend rules.

SCRA goods notification updates eligible underlyings for commodity derivatives, requiring exchanges to amend rules and report implementation.
Ministry of Finance notifications dated March 01, 2024 revise the list of goods under the Securities Contracts (Regulation) Act, expanding derivative-eligible underlyings by adding thirteen goods and metal alloys; SEBI updates the Master Circular references to the new notification and directs recognised exchanges and clearing corporations to amend bye-laws, disseminate the circular to members and on websites, and report implementation to SEBI.

FATCA and CRS centralization at KRAs streamlines reporting; intermediaries must upload client certifications and ensure compliance.
Intermediaries who are reporting financial institutions must upload FATCA and CRS client self certifications onto KRA systems from July 01, 2024; certifications obtained earlier must be uploaded within 90 days of implementation. Intermediaries remain responsible for obtaining and reporting certifications, must confirm their reasonableness using account opening and PMLA documentation, and must update certifications on client notification. KRAs shall develop coordinated systems and uniform guidelines in consultation with SEBI.

Pricing methodology: privately placed InvIT institutional placements floor set at NAV per unit; public InvITs retain market-based floor.
SEBI distinguishes pricing for institutional placements: public InvITs must price at not less than the average of weekly high and low of closing market prices for the two weeks preceding the relevant date, with a permissible discounted price subject to unitholder approval; privately placed InvITs must price at not less than the NAV per unit based on a full valuation of all existing assets under the InvIT Regulations. The circular takes immediate effect.

Return of draft offer document for non compliant disclosures requires remedial resubmission and public disclosure by the issuer.
Guidelines require return of draft offer documents that fail disclosure and presentation standards under Schedule VI of the ICDR Regulations, need substantial revision, face corrective regulatory interpretation, show inconsistencies, or involve material concerns from other regulators or litigation affecting eligibility. Resubmitted drafts must address the specific deficiencies, comply with ICDR and other laws, may incur fees for subsequent changes under Schedule XVI, and must be publicly announced as resubmissions with sectoral regulator intimation where applicable.