Base Minimum Capital requirement mandates profile-based deposits for brokers and trading members to address operational trading risks.
SEBI realigns Base Minimum Capital requirements for stock brokers and trading members by prescribing profile-based BMC deposit levels distinguishing proprietary trading, client-only trading, mixed activity, and algorithmic trading. BMC is newly required for derivative trading members; deposits are non-additive across segments and reduced to forty percent for exchanges without nation-wide terminals. No exposure shall be granted against BMC; at least fifty percent must be cash or cash equivalents. Exchanges must amend bye-laws, notify members, report implementation, and may prescribe higher deposits based on risk perception.

Dematerialisation threshold enables shift from Trade For Trade to Normal Rolling Settlement upon required demat certification.
Companies with connectivity to both depositories may be shifted from Trade for Trade Settlement to Normal Rolling Settlement provided at least 50% of other-than-promoter holdings are dematerialised and a certificate from the Registrar and Transfer Agent (or a practising Company Secretary/Chartered Accountant where no separate RTA exists) is submitted; exchanges must ensure no other grounds for continued TFTS exist and report actions in their Monthly/Quarterly Development Reports.

Recognition and governance norms require exchanges and clearing corporations to meet fit and proper, ownership and appointment standards.
The circular prescribes procedural requirements for recognition, ownership and governance of stock exchanges and clearing corporations under SECC Regulations: applicants must demonstrate compliance with statutory and regulatory criteria, submit detailed documentation including business plans and fit-and-proper information, and satisfy SEBI on appointment of key department heads before final approval; ownership beyond prescribed thresholds requires prior approval with detailed disclosures and ongoing monitoring; governance rules cover director and management appointments, public interest director criteria, committee composition and reporting, segregation of regulatory departments, conflict management, and a prescribed compensation policy with deferral, malus and clawback provisions.

Pre-trade risk controls tighten order checks and dynamic price bands to prevent aberrant trades and require broker risk-reduction.
SEBI mandates a framework of pre-trade risk controls for stocks, ETFs, index and stock futures requiring exchanges to block single orders above a prescribed value, ensure brokers apply client-level value/quantity checks and cumulative open order value limits, and monitor broker controls with penalties for non-compliance. Exchanges must implement tightened dynamic price bands for securities with derivatives and allow staged relaxation during market trends. A mandatory risk-reduction mode triggers when broker collateral utilization against margins reaches a high threshold, cancelling unexecuted orders, permitting only immediate-or-cancel orders, enforcing margin checks, and reinstating normal mode when utilization falls below the threshold.

Annual inspection policy for exchanges to address member risks and mandate information sharing to strengthen market supervision.
SEBI directs exchanges and clearing corporations to formulate, in consultation with SEBI, a policy for annual inspection of members covering risks from members' activities, to conduct inspections and follow-up action under that policy, and to establish information sharing among exchanges for members with multiple memberships to improve supervision.

Rajiv Gandhi Equity Savings Scheme provides a tax deduction for new retail investors investing up to Rs. 50,000 in eligible equities.
The Rajiv Gandhi Equity Savings Scheme, 2012 provides a tax deduction under section 80CCG for qualifying new retail investors with gross total income up to ten lakh rupees who invest up to fifty thousand rupees in eligible securities. It requires designation of a demat account, submission of Form A and PAN, automatic one-year fixed lock-in on designated securities (unless excluded by Form B), a subsequent two-year flexible lock-in with 270-day compliance requirements each year, and reporting and certification obligations for depositories, depository participants, stock exchanges and mutual funds.

Market maker inventory limits for SME platforms set with buy-side exemptions, re-entry rules and mandatory quoting obligations enforced.
SEBI prescribes upper-side inventory limits and operational rules for market makers on SME exchanges, including buy-quote exemption and re-entry thresholds that include a mandatory initial inventory of five percent of the issue; exemptions are unavailable for the first three months, only exchange-acquired shares count toward thresholds, two-way quoting is required until the upper threshold is reached and must resume at re-entry, no downside exemption applies, and exchanges must amend bye-laws, publish the circular, and report implementation to SEBI.

SLB roll-over facility allows extension of lending and borrowing; liquid index ETFs added under defined liquidity criteria.
A roll-over facility is introduced into the SLB framework allowing lenders and borrowers to extend positions within the same SLB session, prohibiting netting between a client's borrowed and lent positions and limiting roll-overs to the original contract plus two rollovers. Liquid Index ETFs are made eligible for SLB subject to liquidity criteria-trading frequency and impact cost-and ETF position limits are to be based on assets under management; exchanges and depositories must implement systems and amend rules accordingly.

Discontinuation of mini index derivatives: fresh contracts prohibited while existing series may trade until expiry with market notice.
SEBI directs the discontinue of mini derivative contracts on Index (Sensex and Nifty) by prohibiting issuance of fresh mini derivative contracts; existing unexpired contracts may trade until expiry and new strikes may be introduced in existing contract months. Exchanges must give due market notice and take necessary action to implement the directive. The circular invokes the Board's regulatory powers to protect investor interests and regulate the securities market.

Credit of exit load to scheme: exit loads must be credited to the scheme, altering scheme accounting and disclosure practices.
Regulatory amendments modify mutual fund prudential limits, expense treatment, valuation and disclosure. Sectoral exposure for debt schemes remains capped at 30% of net assets, with an additional up to 10% allowance solely for NHB-registered, AA-rated HFCs subject to an overall HFC exposure cap. Brokerage and transaction costs for trade execution may be capitalised within prescribed per-transaction caps and otherwise charged only within the TER; excess costs must be borne by the AMC, trustee or sponsor. NAV must be calculated and published daily; half-yearly unaudited results must be hosted and advertised; and exit loads charged after commencement must be credited to the scheme.

Credit default swap participation limited to protection buyers to hedge mutual fund corporate bond risk, with exposure and disclosure conditions.
Mutual funds may participate in CDS only as protection buyers to hedge credit risk on corporate bonds held in Fixed Maturity Plans with tenor over one year; they must buy protection from RBI approved market makers under Master Agreements, limit single counterparty exposure to 10% of scheme net assets, keep cumulative gross exposure (CDS, equity, debt, derivatives) within 100% of net assets, cap total derivative premiums at 20% of net assets, adopt a board and trustee approved written CDS policy with annual review, and make prescribed scheme and scheme wise disclosures in SID, monthly and half yearly reports and annual accounts.

Arbitration deposit exemption for small investor claims shifts deposit burden to exchanges and mandates immediate implementation and reporting.
Clients with claims or counterclaims up to the prescribed small-claim threshold who file an arbitration reference shall be exempt from the deposit; related expenses will be borne by the stock exchanges. Stock exchanges must amend bye-laws immediately, notify members and publish the change, report implementation to SEBI in Monthly Development Reports, and will be subject to SEBI inspection for compliance; the circular is effective immediately under SEBI's regulatory powers.

FII debt reinvestment limits now capped annually, with defined utilization windows and auction trigger, and SEBI oversight enforced.
SEBI amends the FII debt allocation framework to allow annual reinvestment up to fifty percent of prior year debt holdings, imposes utilisation windows of thirty days for government debt and sixty days for corporate debt allocated by bidding, and permits FIIs to avail corporate long term infrastructure limits without prior SEBI approval until overall FII investment reaches ninety percent, after which remaining limits will be auctioned; SEBI will monitor utilisation.

Dematerialisation eligibility enables shift from trade for trade to rolling settlement if demat threshold and no continuation grounds met.
Securities of companies with connectivity to both depositories may be shifted from Trade for Trade Settlement to Rolling Settlement if at least half of non promoter holdings are in dematerialised form, evidenced by a certificate from the Registrar and Transfer Agent or, where no separate RTA exists, from a practicing company secretary or chartered accountant, and provided there are no other grounds for continuation of Trade for Trade Settlement; exchanges must report actions taken in development reports.

Change of name in BO account allowed with prescribed proof; DPs must verify, retain records and maintain an audit trail.
Change of name in an individual Beneficial Owner account is allowed subject to prescribed documents: for marriage, a marriage certificate, passport showing spouse's name, or official gazette publication; for other name changes and change of father's name, publication in the official gazette. Depository Participants must collect self attested copies, verify them against originals, and retain the copies. Depositories must implement the provisions within three months, maintain an audit trail of name changes, amend relevant bye laws and operating instructions, and notify DPs and publish the circular on their websites.

Rejection of draft offer documents: framework notified, requiring merchant bankers to exercise due care before filing.
SEBI has notified a framework permitting rejection of draft offer documents filed with the Board and published the General Order on its website; registered merchant bankers are advised to take note and exercise due care before filing draft offer documents, the circular being issued under SEBI's statutory powers and available on the SEBI website.

Electronic IPO application mechanism via broker network expands submission channels and sets broker, bank and registrar responsibilities.
SEBI introduced an electronic application mechanism using the nationwide broker network to accept ASBA and non ASBA public issue applications at designated broker centres. Brokers must acknowledge and upload bids to the Stock Exchange platform, handle payments or forward ASBA schedules, and bear liability for failures. Collecting banks/SCSBs and their controlling branches consolidate schedules and issue final certificates to registrars, who reconcile with exchange and depository data, calculate broker commissions disclosed in the offer document, and follow standard allotment, refund and listing procedures; stock exchanges must publish broker centre details and enforce compliance.

VaR margin methodology for index ETFs expanded, with cross margining allowed between ETFs and constituent instruments to improve margin efficiency.
The circular requires a VaR-based margin for broad-based index ETFs computed as the higher of a prescribed floor or a volatility multiple, excludes sectoral ETFs from this treatment, and extends cross-margining to allow offsets between ETFs and constituent stocks, ETFs and constituent stock futures, and ETFs and index futures to the extent they offset each other; cross-margining benefits will be withdrawn if ETF creation/redemption is suspended. Stock exchanges must implement systems, amend bylaws, notify members and publish the changes.

ASBA branch expansion: SCSBs must designate branches as ASBA-enabled and submit prescribed status reports to widen investor access.
The circular mandates expansion of the Application Supported by Blocked Amount (ASBA) facility by requiring Self Certified Syndicate Banks to designate branches for ASBA in a phased manner and to submit prescribed status reports within fifteen days of each phase deadline, consolidating prior reforms to broaden investor access and streamline application processing.

Grievance redressal mechanism required on delivery instruction forms, with complaints to be filed via the designated regulatory portal.
The circular mandates printing a revised grievance redressal mechanism on the inside back cover of the Delivery Instruction Form Book; requires depositories to amend applicable bye laws, rules and regulations and to notify and disseminate the requirement to their Depository Participants; lists categories of entities and complaint types covered; and directs investors to file complaints via the designated online regulatory complaint portal or by sending complaints to the Office of Investor Assistance and Education or the regional offices using the provided contact details.