Know Your Client requirements: Section C moved from Part I to Part II; intermediaries must update forms within transition period.
Certain client information formerly in Section C of Part I of the standard Account Opening Form is moved to Part II for individuals and non-individuals. Revised Part I data are to be captured by KRAs from the date of the circular, and intermediaries have six months to modify pre-printed KYC forms. The shift retains basic, stable KYC in Part I for central capture while placing changeable, intermediary-specific details in Part II to reduce repeated KRA updates and harmonise KYC across the financial sector.

Deposit requirements for debt-segment members require specified deposits for clearing members and limited exemptions for existing or gross-only clearers.
Deposit obligations for the dedicated debt segment require Stock Broker/Proprietary Trading Members to comply with the Base Minimum Capital requirement; Clearing Members and Self Clearing Members must deposit ` 10 lacs with no exposure to be granted against that deposit. Exemptions apply where the entity is already a CM/SCM or stock broker in another segment, or where a CM/SCM clears and settles only on a gross basis with no settlement guarantee. Stock Exchanges and Clearing Corporations must amend rules and implement systems within one month and report implementation to SEBI.

Periodic Call Auction rationalization narrows illiquidity criteria, mandates minimum auction sessions and allows order carryover.
Rationalization tightens the Periodic Call Auction framework by defining illiquid scrips through a low average turnover measure applicable across all trading exchanges and prescribing exclusions based on market capitalization, dividend history, and a combined profitability, pledged promoter holding and book value test. Exchanges must keep a scrip in the auction for at least one quarter, provide at least two daily auction sessions with a uniform closing session, allow orders to remain valid all day and carry un matched orders into the next session, and implement systems and bye law amendments from the next quarter.

Opaque structure exemption: ring fenced regulated FIIs avoid opaque classification where broad based funds and disclosure undertaking exist.
An FII or sub account that must ring fence assets and liabilities by home law is not treated as having an opaque structure if it is regulated in its home jurisdiction, each fund or sub fund is broad based, and the applicant undertakes to provide beneficial owner information when requested by the regulatory authority.

Shift from Trade for Trade Settlement allowed where dual depository connectivity and required dematerialisation certificate are in place.
Shift from Trade for Trade Settlement to Normal Rolling Settlement is permitted where listed companies have connectivity with both depositories and at least fifty percent of non promoter holdings are dematerialised, certified by the Registrar and Transfer Agent or, if no separate RTA exists, by a practising Company Secretary or Chartered Accountant; exchanges must ensure no other grounds for TFTS continuation and report actions in their development reports.

Cash settled 10 year interest rate futures launched with two underlying designs, defined settlement mechanics, position limits and margin rules.
Introduction of cash settled Interest Rate Futures on the 10 year Government of India security with two underlying designs (single coupon bond or notional basket based bond), mandatory disclosure of selection and weighting criteria, submission of contract specifications and risk management frameworks to SEBI, pilot launch, specified contract size (2000 bonds), trading hours, serial monthly tenors up to three months, daily and final settlement methodologies with NDS OM and FIMMDA fallbacks, expiry rules, cash settlement in INR, prescribed position limits at client, trading member and exchange levels, price band rules with limited expansions, and margining based on 99% one day VaR plus additional margins.

Standardized Rights and Obligations document mandated to replace BO-DP agreements, harmonizing demat account opening and requiring client acknowledgement.
A mandatory common Rights and Obligations document replaces existing Beneficial Owner Depository Participant agreements, must be provided to beneficial owners with acknowledgement, and any conflicting clause in voluntary or existing documents that dilutes DP responsibility or conflicts with governing rules and regulations is void; depositories must notify DPs, implement the change for new clients within the prescribed timeframe, amend bye laws and report implementation.

Updated illustrative format for Statement of Assets and Liabilities required in offer documents effective for filings after the circular date.
SEBI prescribes an illustrative format for the Statement of Assets and Liabilities in offer documents, updating the Schedule VI presentation to align with the revised Schedule VI and Schedule III formats. Annexure A provides a multi year tabular disclosure of Shareholders' Funds, Non Current Liabilities, Current Liabilities, Non Current Assets and Current Assets with specified subitems and totals. The revised format is applicable to all draft and final offer documents filed with the Board on or after the circular date; the circular will be rescinded upon formal amendment of the SEBI (ICDR) Regulations.

Long term foreign investors designation clarifies eligible foreign categories for participation in infrastructure debt funds.
Specified categories of foreign institutional investors are designated as Long Term Foreign Investors for Infrastructure Debt Funds, including foreign central banks, governmental agencies, sovereign wealth funds, international/multilateral organizations, insurance funds and pension funds; regulated foreign feeder funds are also included when a stipulated portion of their assets under management is held by investors from these categories.

Compliance timeline extension for employee benefit schemes under SEBI guidelines permits additional alignment while disclosures remain mandatory.
SEBI extended the compliance timeline for alignment of existing employee benefit schemes with SEBI (ESOS and ESPS) Guidelines, 1999, amending the Equity Listing Agreement to replace the prior compliance date with a later deadline while reiterating that all other disclosure and compliance requirements from earlier SEBI circulars continue to apply during an ongoing consultative review to frame more enforceable regulations addressing trust composition, disclosures, and safeguards for secondary market transactions.

Foreign investment limit in credit-enhanced bonds: purchases monitored, subject to depository approval and mandatory divestment on breach.
FIIs and QFIs may invest in credit enhanced bonds within the corporate bond foreign investment ceiling and a dedicated sublimit. Depositories must monitor and publish aggregate holdings daily, receiving same-day ISIN-wise and investor-wise transaction reports from Custodians/QDPs. When a threshold of the sublimit is reached, depositories will announce it, suspend fresh purchases without prior depository approval, and coordinate prior-approval requests received via Custodians/QDPs; approvals are granted after market hours on a first-come-first-served basis and valid for two trading days. Breaches require notified FIIs/QFIs to divest excess holdings within seven working days.

Monitoring of listing compliance: stock exchanges must verify disclosures, seek clarifications, and report unsatisfactory responses for enforcement.
Recognised Stock Exchanges must establish staffed frameworks to monitor the adequacy and accuracy of listed companies' disclosures under the Equity Listing Agreement, detect violations of securities laws and the Listing Agreement, seek timely clarifications from issuers, publish queries and responses with original disclosures, treat unsatisfactory or absent replies as non compliance subject to fines and suspension procedures, report such cases to the regulator via an "Exception Report," and set up a dedicated monitoring cell while disclosing responsible promoters, directors or key managerial personnel in cases of default.

System audit obligations for stock brokers require adherence to a revised framework and quarterly reporting of major non compliances.
Revised system audit framework for stock brokers requires audits according to prescribed guidelines (process, auditor selection, TOR). Stock exchanges must ensure implementation, track broker wise audit findings quarterly, ensure timely rectification of major critical findings, and report major non compliances to the regulator quarterly. Brokers already underway may follow prior exchange framework for the current year; others must adopt this framework. Exchanges must implement systems, amend bye laws where necessary, notify trading members and publish the provisions.

Debt securities disclosure: require cash flow illustration and standardized coupon/redemption payment mechanics for issuers.
Issuers must include an illustration of debt security cash flows in the Prospectus/Disclosure Document and apply the Actual/Actual day count convention; coupon dates falling on a Sunday or holiday will be paid on the next working day while maturity dates on a Sunday or holiday will be paid on the previous working day. Allotments for public issues shall be made on the basis of the date of upload into the exchange's electronic book, with proportionate allotment on oversubscription. Listed issuers may disclose unaudited financials with a limited review for the stub period, and must publish debenture trustee contact details in annual reports and on websites.

Investor complaint disclosure: exchanges must publish broker complaint rates and resolution percentages publicly to increase transparency.
Stock exchanges must disclose on their websites, for each broker, the number of active clients, the percentage of complaints received against active clients, and the percentage of complaints resolved against complaints received, and must also publish exchange-level totals of complaints, active clients and the overall redressal rate. These additional fields amend the prior reporting format and take effect from the quarter ended December 2013 under powers of Section 11(1).

Transmission of securities: simplified documentation and mandated timelines for demat and physical transfers, with nomination publicity required.
Standardisation of transmission of securities prescribes revised thresholds for simplified documentation in dematerialised transfers and specifies mandated processing timelines for dematerialised and physical transmissions measured from receipt of prescribed documents. For physical holdings, prescribed standardized documents apply where a nominee exists; where no nominee exists, simplified documentation applies up to a specified issuer-level value and formal succession instruments or court authority are required for higher-value holdings. Registrars must publicize nomination and exchanges and depositories must amend rules; compliance is required within a fixed period.

Listing on Institutional Trading Platform allows SME securities to list without a public offer, limited to informed investors and private funding.
Listing on an Institutional Trading Platform permits SMEs and start-ups to list specified securities on an SME Exchange without making an initial public offering, accessible only to informed investors. Eligible companies must meet fitness criteria, financial vintage and size limits, and demonstrate minimum investments from specified investor categories. Listed companies cannot undertake public offers while on ITP, may raise capital only by private placement or restricted rights issues, must maintain minimum promoter shareholding locked-in for a period, and are subject to prescribed exit, delisting and disclosure liabilities.

General Information Document for public issues: mandated generic disclosures, GID availability, lead manager distribution and posting requirements.
The circular mandates a standardized General Information Document (GID) for public issues under the SEBI ICDR Regulations, 2009, to present issuer agnostic guidance on IPO/FPO processes. Lead managers must ensure the GID displays the date of last update, is printed in prescribed minimum quantities, supplied to investors on request, and posted on stock exchange and lead manager websites. The annexed GID details eligibility, Book Building and Fixed Price procedures, investor categories, ASBA/non ASBA payment mechanisms, technical grounds for rejection, allocation and allotment methodology, refund and listing timelines, and confirms that RHP/Prospectus disclosures prevail in case of conflict.

Centralized corporate bond database increases transparency by mandating depositories and issuers to publish validated bond data.
A centralized database for corporate bonds/debentures requires both depositories jointly to create, host, maintain and disseminate a unified repository for dematerialised instruments, with systems to ensure data integrity and synchronization. Issuers, stock exchanges, credit rating agencies and debenture trustees are designated information providers: issuers must supply required fields at ISIN activation and update changes; exchanges, rating agencies and trustees access secure logins to verify and update ratings, listing status and default history. Depositories must host, share and publish validated data within prescribed short timelines and implement phased collection of historical data.

SEBI modifies disclosure formats for share acquisitions, disposals and encumbrances under SAST Regulations, effective immediately.
SEBI prescribes revised disclosure templates under the SAST Regulations for acquisition, disposal and encumbrance events: Annexure 1 for Regulation 29(1) acquisition details, Annexure 2 for Regulation 29(2) acquisition/disposal details, and Annexure 3 for Regulation 31(1)/(2) promoter encumbrance events. Templates require identification of target, acquirer/PACs, promoter status, listing exchanges, pre and post transaction shareholding and voting rights (including encumbrances and convertible instruments), mode and date of transaction, and equity and diluted share capital; Part B confidential fields to exchanges only. Circular effective immediately.