Eligible fund manager framework established: registration, segregation, disclosure and AML obligations for portfolio managers.
The amendment creates a distinct regulatory Chapter II-A for portfolio managers acting for eligible fund managers and eligible investment funds (as defined in the Income-tax Act), prescribes entry procedures for existing and new registrants, sets out operational obligations including segregation of funds, custodian and bank requirements, quarterly reporting and AML compliance, and grants specified exemptions from certain provisions of the principal regulations while inserting Schedule VI with required declarations.

Recruitment procedure change: interviews barred for whole-time employees except officers and direct recruitment limited to written examination.
Regulation 6(4)(c) is amended to add that interview and/or group discussion shall not be conducted for recruitment of whole time employees other than officers. The Schedule to clause (b) of regulation 6(4) requires that instances of "Direct Recruitment" be read as "only through written examination" and omits the requirement "Minimum three members- two internal and one external" wherever it appears.

Registration conditions revised: single ongoing certificate replaces initial/permanent regime, with standardised fees and disclosure duties.
The Amendment removes the distinction between initial and permanent registrations across multiple intermediary regulations, establishing a single certificate of registration valid until suspended or cancelled. Pre existing registrants are deemed registered under the new provisions. Procedural changes include rejection after hearing with a thirty day communication of grounds, mandatory prompt intimation to the Board of changes in submitted information, and standardised fee schedules and payment timing for maintaining registration.

REIT amendments tighten holdco investment, sponsor group rules and disclosure while capping general purpose funding.
The amendments define holdco and sponsor group, permit investment via holdco subject to minimum ultimate REIT holding and contractual safeguards, require managerial control and voting exercise in holdco/SPV boards, mandate substantial pass through distributions from SPVs and high distribution from holdco, cap amounts for unspecified general purposes relative to funds raised, strengthen valuer qualifications and disclosure obligations including full valuation reports and due diligence certificates, and impose refund obligations with interest where listing permission is not received.

InvIT regulatory amendments broaden holdco investment framework, tighten disclosure, public offering and valuation requirements for InvITs.
Amendments revise InvIT regulations to enable investments through holding companies, define "holdco" and related terms, and set governance and distribution requirements ensuring InvIT control over underlying SPVs and board appointments. They rework issuance rules to distinguish initial public offers from private placements, set minimum public allotment thresholds, mandate placement memorandum and valuation disclosures, require merchant banker and valuer involvement, restrict general purpose use of proceeds, and impose refund and listing conditions. A new Board power allows relaxation of procedural or technical requirements in specified circumstances.

Employee reservation allotment rules amended to allow proportionate allocation of unsubscribed shares subject to a per-employee cap.
The amendment permits allocation of the unsubscribed portion of the employee reservation on a proportionate basis in under-subscription scenarios, subject to a value threshold for individual allotments and an overall per-employee maximum ceiling, thereby adding a procedural fallback to the existing allotment rules under the Issue of Capital and Disclosure Requirements.

Subscription to pension scheme: whole-time employees to join New Pension Scheme; prior members may opt to stay in Provident Fund.
The Amendment provides that employees shall be members of the SEBI Employee's Provident Fund and bound by its Rules unless specified otherwise, and that from a specified date whole time employees joining the Board shall become members of the SEBI New Pension Scheme and be bound by the Scheme Rules; existing whole time members of the Provident Fund before that date will be given an option to remain in the Provident Fund or join the New Pension Scheme in the prescribed manner.

Appointment of Whole Time Member under statutory authority; tenure begins on assumption of charge and is time limited.
The Central Government appoints Shri Gurumoorthy Mahalingam as Whole Time Member of the Securities and Exchange Board under Section 4 of the SEBI Act, 1992 and rule 3 of the SEBI (Terms & Conditions of Service of Chairman & Members) Rules, 1992, effective from his assumption of charge; tenure is time limited and subject to an upper age cap and further orders.

Recognition renewal for a clearing corporation granted for a limited term, subject to regulatory conditions and compliance.
Renewal of recognition is granted to Metropolitan Clearing Corporation of India Limited under Regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and relevant powers of the Securities Contracts (Regulation) Act, 1956 for a fixed one year term, on the basis that renewal is in the interest of trade, the securities market and the public interest, and subject to compliance with conditions specified by the regulator and any additional requirements that may be prescribed.

Recognition renewal for a clearing corporation granted, conditioned on ongoing compliance with SEBI-prescribed requirements.
SEBI grants renewal recognition to Indian Clearing Corporation Limited under Regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 for a one-year term commencing on the third day of October and ending on the second day of October of the following year, subject to compliance with conditions specified by SEBI and any further conditions that may be prescribed or imposed.

Renewal of recognition granted to a clearing corporation, subject to SEBI compliance conditions and regulatory oversight.
SEBI granted renewal of recognition to National Securities Clearing Corporation Ltd. under Regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, exercising powers under section 4 read with sub section (4) of section 8A of the Securities Contracts (Regulation) Act, 1956, for the one year period commencing 3rd October, 2016 and ending 2nd October, 2017, subject to stated conditions and any conditions SEBI may prescribe; the Clearing Corporation must comply with conditions specified by SEBI.

Notified goods designation under securities contracts regulation establishes listed commodities as subject to the statutory notified goods framework.
Notification designates a comprehensive list of commodities as notified goods under clause (bc) of section 2 of the Securities Contracts (Regulation) Act, 1956, after consultation with the securities regulator. The Schedule lists categorized commodities-Cereals and Pulses; Oilseeds, Oilcakes and Oils; Spices; Metals; Precious Metals; Gems and Stones; Fibres; Energy; Sweeteners; Plantation; Dry Fruits; and Others-thereby defining the scope of goods subject to the statutory concept of notified goods.

Recognition renewal for stock exchange subject to SEBI compliance conditions, permitting continued operation in securities markets for a fixed term.
Renewal of recognition is issued to Metropolitan Stock Exchange of India Limited for trading in contracts in securities under the Securities Contracts (Regulation) Act for a one-year term commencing in September, and is expressly subject to compliance with conditions that SEBI may prescribe or impose from time to time.

Contribution to Settlement Guarantee Fund requires exchanges, clearing corporations and members to contribute and replenish shortfalls.
The amendment substitutes regulation 33 to require that the contribution to the Settlement Guarantee Fund specified in regulation 39 be made by the recognised stock exchange, the recognised clearing corporation and the clearing members as specified by the Board, and requires the recognised clearing corporation and recognised stock exchange to replenish any shortfall to the threshold level specified by the Board.

Settlement disqualification criteria clarified: only serious defaults with market wide impact or investor rights harm bar settlement; restitution and admission may permit settlement.
The amendment narrows the settlement bar in regulation 5(2)(b) by specifying that only serious defaults-those with market wide impact, causing substantial investor losses, or affecting investor rights-are disqualified. Applications may still be considered if the applicant intends to make good investor losses and gives a written admission of the charge for the purpose of settlement. Seriousness is assessed by reference to the default's nature, the applicant's role, evidence weight, cooperation, referrals to investigative authorities, and potential systemic risk to financial institutions; market wide impact and investor rights effects are further defined.

Transfer restrictions on offshore derivative instruments require eligible transferees and prior consent unless transferees are pre approved.
The substituted regulation requires a foreign portfolio investor to ensure transfers of offshore derivative instruments are made only to persons satisfying sub regulation (1) and that such transfers occur with the prior consent of the foreign portfolio investor, except where transferees are pre approved by the foreign portfolio investor.

Dividend distribution policy requirement mandates disclosure by largest listed companies, detailing parameters and rationale for dividend decisions.
The top five hundred listed entities by market capitalization must formulate a Dividend Distribution Policy and disclose it in their annual reports and on their websites, specifying circumstances for dividend expectation, financial parameters, internal and external factors, utilization of retained earnings, and parameters for different classes of shares; any additional or changed parameters must be disclosed with rationale. Other listed entities may disclose such a policy voluntarily.

Wind-down plan requirement mandates depositories to ensure transfer mechanisms for accounts and operations upon severe financial or operational failure.
Every depository must devise and maintain a wind-down plan per Board guidelines to enable transfer of beneficial owner accounts and operational powers to an alternative institution in events such as erosion of net worth, insolvency, or inability to provide critical depository operations or services.

Wilful defaulter status expanded as a disqualifying criterion, applying to persons and their directors or promoters.
The amendment inserts a definition of "wilful defaulter" into regulation 2(1), covering persons categorized by banks, financial institutions or consortiums under RBI guidelines and including any person whose director, promoter or principal officer is so categorized. Schedule II is amended to add "the director, the promoter" after "principal officer" and to include absence of categorization as a wilful defaulter as an express criterion.

Wilful defaulter designation bars public issue of non-convertible redeemable preference shares and mandates enhanced disclosures.
The Regulations add a wilful defaulter definition and prohibit public issues of non-convertible redeemable preference shares where the issuer or its controllers/promoters/directors are restrained from market access, or where the issuer or any promoter or director is a wilful defaulter or has defaulted on interest or principal repayments for over six months. For private placement listings, specified disclosures about wilful defaulter status must be provided, prominently disclosed on the cover and presented as a separate identifiable chapter or section.