Expiry day limitation to designated weekdays restricts equity derivatives expiries to a chosen weekday, with monthly tenors.
SEBI requires exchanges to limit equity derivatives expiries to one chosen weekday (Tuesday or Thursday), permit one weekly benchmark index options contract on that weekday, and offer all other equity derivatives with a minimum one month tenor expiring in the last week of each month on the exchange's chosen weekday; changes to an existing settlement day require prior SEBI approval and exchanges must update systems and bylaws to implement the framework.

Appointment process for key management personnel now requires independent search, NRC review and Governing Board final approval.
Mandates a governance process for appointment and related actions for specified KMPs (Compliance Officer, Chief Risk Officer, Chief Technology Officer, Chief Information Security Officer): MIIs must engage an independent external agency to recommend candidates, the NRC evaluates recommendations and, after discussion with management, forwards recommendations to the Governing Board which makes the final appointment decision. NRC similarly evaluates re-appointments, terminations and resignations, and Governing Boards must give KMPs a reasonable opportunity to be heard before termination. Governing Boards must prescribe cooling-off periods for KMPs joining competing MIIs and record and inform SEBI when a PID is not re-appointed.

Digital KYC accessibility required for intermediaries to enable inclusive digital account opening for persons with disabilities.
The circular requires that the digital KYC process be made accessible to persons with disabilities, including visual impairments, and directs intermediaries to implement digital accessibility measures and follow the revised FAQ on Account Opening by Persons with Disabilities published on the regulator's website, issued under the regulator's statutory regulatory powers.

Internal audit standards require independent auditors to report to the audit committee, strengthening MII governance and oversight.
Internal audit standards require MIIs to conduct an annual, institution wide internal audit across critical operations, regulatory/compliance/risk functions and other activities by independent audit firm(s); the internal auditor shall report exclusively to the Audit Committee, follow time bound procedures for obtaining HoD comments and include dropped observations with justifications, and appraise the Audit Committee at least semi annually in the absence of management.

Electronic Book Provider platform: mandatory for specified private placements with enhanced disclosure, allocation and anchor investor rules.
Revisions require specified private placements of debt, NCRPS and municipal debt to be conducted through the EBP platform while allowing elective EBP use for securitised instruments, money-market instruments and REIT/InvIT units; smaller issues may opt in. Issuers must provide the Placement Memorandum and term sheet to the EBP within prescribed lead times, disclose issue size and green shoe portion (green shoe capped at five times base size) and anchor investor details; anchor allocations are capped by credit-rating bands and must be electronically confirmed by T 1 day. Allotment at cut-off uses pro-rata rules; EBPs must publish detailed issuance data by defined timelines. Certain clauses have staggered effective dates.

Extension of implementation timeline for ODI and segregated portfolio disclosure requirements delays compliance obligation and systems readiness.
SEBI has extended the deferred implementation date for paragraphs 2.2 to 2.7 of its December 17, 2024 circular-covering additional disclosure obligations for ODI subscribers and FPIs with segregated portfolios-to November 17, 2025; all other provisions of that circular remain unchanged and depositories must complete necessary systems and procedures to ensure compliance by the revised date.

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.