Mutual fund compliance framework updated with consolidated disclosure, governance, valuation, and risk management requirements

Cost accountants added as eligible professionals for annual audit of research analysts under revised compliance rules.

Annual audit eligibility for investment advisers expanded to include Cost Accountants under revised compliance requirements.

Intraday borrowing rules for mutual funds deferred, with the new applicability date set for July 15, 2026.

Relaxed account tagging and reporting norms ease stock broker compliance, with demat account reporting removed for non-broking use.

Minimum public shareholding and fraudulent illiquid-scrip trading findings were upheld, with limited debarment relief on proportionality.

Abridged Prospectus Requirements: draft and final abridged prospectus must be filed, hosted and QR linked with offer documents.

Misuse of preferential issue proceeds cannot be cured by shareholder ratification and attracts PFUTP liability and penalties.

Settlement Guarantee Fund coverage now requires stress testing for simultaneous default of three clearing members; exemptions allowed case-by-case.

Minimum Public Offer Requirements set tiered issuer-based allotment minima with mandatory staged public shareholding increases and exchange enforcemen...

Evidence-taking powers permitted: SEBI under 11C and the Tribunal under 15U; decisions must rely on evidence on record.

Intraday Borrowing rules allow same day fund borrowing against guaranteed receivables for redemptions, with AMC bearing cost and risk.

Certification requirement for Persons Associated with Research Services eased: lighter NISM Series-XXV-A permitted for sales and non-core staff.

Voluntary Debit Freeze allows investors to lock mutual fund folios to prevent debits until unlocked; KYC and contact details required.

Custodian regulatory compliance requires SBU segregation, documented risk management, BCP/DR resilience and orderly wind down safeguards.

Regulatory reporting by AIFs: mandatory annual activity report via SEBI portal and limited quarterly reports replacing March quarter submission.

Categorization of Mutual Fund Schemes: uniform scheme categories, allocation rules and overlap limits imposed with compliance timelines.