Investment concentration limits for Category III AIFs revised, with higher threshold for large-value accredited-investor funds.
Amendment substitutes clause (d) of sub-regulation (1) of regulation 15 to restrict Category III AIFs to a capped share of investable funds in any single Investee Company, by direct investment or through units of other AIFs, while permitting large value funds for accredited investors a higher allowable concentration; for listed equity the applicable cap may be calculated on either investable funds or the scheme's net asset value, subject to conditions specified by the Board.

Government nomination of SEBI member: Secretary, Ministry of Corporate Affairs appointed to SEBI replacing previous nominee.
Exercising powers under Section 4 of the Securities and Exchange Board of India Act, 1992, the Central Government appoints Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs, as Member, SEBI, replacing Shri K. V. R. Murty, Joint Secretary, Ministry of Corporate Affairs, by way of amendment to notification S.O. 195(E) dated 09.03.1992.

SEBI notification amendment substitutes the named member entry, updating the Board's statutory administrative record.
The notification substitutes the entry against serial number 2 in S.O. 147(E) dated 21.02.1992 to record Ajay Seth as the Member, effected under the powers conferred by Section 4 of the Securities and Exchange Board of India Act, 1992, and issued as S.O. 1025(E) dated 8th March 2022, with a footnote listing prior amendments to the principal notification.

Networth requirement for stock brokers increased in staged timelines; self clearing members meeting stock broker networth rules eligible to register.
Amendment replaces provisos in regulation 35(a)(viii) to require staged increases in networth for stock brokers registering as depository participants, and confirms that a self-clearing member meeting the networth requirements under the Stock Brokers Regulations is eligible to register as a depository participant.

Networth and deposit framework revised; electronic gold receipt segment and professional clearing member introduced, affecting capital and client fund treatment.
The amendments create a defined category of professional clearing member, add an electronic gold receipt segment with specified transactional fee treatment, and replace Schedule provisions to set base and variable networth and deposit requirements for trading members, self-clearing members, clearing members and professional clearing members. Members must meet either base or variable networth, client funds deposited downstream are excluded or included in variable networth computations as specified, and explanations clarify permissible components and exclusions from base networth and free reserves, with Board discretion preserved.

Change in control rules require prior approval and strengthen KRA obligations on KYC validation and audit trails.
KRAs must obtain prior Board approval before continuing after any change in control; perform independent validation of KYC records uploaded by intermediaries as specified by the Board; maintain an audit trail of all uploads, modifications and downloads of client KYC records; and intermediaries must integrate systems with KRAs to enable seamless transfer of KYC documents. Definitions and cross-references are updated to align with current corporate and related statutes.

Ex officio membership on the insolvency board: Ministry of Corporate Affairs nominee formally appointed to represent the Ministry.
The Central Government appointed Dr. Anuradha Guru, Economic Adviser, Ministry of Corporate Affairs, as an ex officio member of the Insolvency and Bankruptcy Board of India to represent the Ministry, under the government's statutory appointment power. The appointment was notified by S.O. 408 (E) dated 28 January 2022 and records administrative particulars including the appointee's designation and the Joint Secretary's administrative signature.

Rescission of notification under Insolvency and Bankruptcy Code withdraws prior Gazette notification while preserving prior actions.
The Central Government rescinds the earlier Gazette notification issued under section 189(1)(b) of the Insolvency and Bankruptcy Code, 2016, withdrawing that notification prospectively while expressly preserving the validity of actions done or omissions made before the rescission.

Prohibition of fraudulent market practices updated to enhance investigative powers and service of summons procedures
Amendments clarify statutory cross-references for defined terms, expand the prohibition to cover dissemination of false or misleading information through any media intended or likely to influence investors, and enhance investigatory powers to call for records, apply for seizure orders where documents may be tampered with, retain seized materials until investigation concludes, and conduct searches and seizures in accordance with the Code of Criminal Procedure. Procedural updates modernize service of summons and notices by permitting delivery via courier, fax, electronic mail or messaging with digital signature requirements, affixation with witness reports, and newspaper publication as a last resort.

Winding up and disclosure reforms: mandatory trustee notice, unitholder voting requirement, and IND AS-based financial reporting.
The amendments require trustees to notify the Board and publish reasons within one day when a scheme is to be wound up, and where trustees initiate winding they must obtain unit holder consent by simple majority (one vote per unit) and publish results within forty-five days; failure to secure consent necessitates reopening the scheme. Financial statements must be prepared in accordance with IND AS subject to regulatory primacy. Ninth and Eleventh Schedules are revised to mandate mark-to-market valuation, recognition of realised and unrealised gains in revenue accounts (excluding unrealised appreciation from distributable income), permit dividend equalization reserves, specify transaction-price accounting excluding transaction costs, and tighten valuation and disclosure norms for non-traded and real estate investments.

Regulatory scope of credit rating agencies broadened to include Board specified activities as conditions of registration.
Regulation 9(f) of the 1999 Credit Rating Agencies Regulations is amended to insert wording that a credit rating agency may be subject to conditions concerning "carrying out any activity as may be specified by the Board or" the existing restriction regarding rating of financial instruments, thereby enabling the Board to prescribe additional activities or conditions as part of a CRA's registration and oversight.

Special situation funds allow Category I alternative investment funds to invest in specified stressed assets and act as resolution applicants
The Regulations introduce special situation funds as a Category I AIF, define special situation assets (including specified stressed loans, security receipts, securities of stressed investee companies and insolvency subject borrowings), permit such funds to act as resolution applicants, and require registration under Chapter II. Schemes must meet Board specified corpus and investor investment size thresholds; investments are limited to special situation assets, barred from investing in associates or non special situation AIFs, and certain stressed loan acquisitions are subject to a Board specified lock in.

Clearing corporation recognition granted, limited to repo and reverse repo settlement in exchange traded debt, subject to compliance.
Recognition granted to AMC Repo Clearing Limited for one year from 17 January 2022 to 16 January 2023, subject to regulatory conditions and ongoing compliance, and limited strictly to clearing and settling repo and reverse repo transactions in debt securities traded on a recognised stock exchange; the limitation was inserted by a subsequent notification with retrospective effect.

Dematerialisation requirement: transfers, issuances and transmissions must be effected only in dematerialised form, tightening compliance.
Regulation 17 requires prior shareholder approval for appointment or re appointment of any person earlier rejected by shareholders, with the notice including detailed justification by the Nomination and Remuneration Committee and the Board. Operational amendments shift reconciliation to a quarterly basis, require issuance and transfers to be effected in dematerialised form within prescribed periods, prohibit processing transfer requests unless securities are dematerialised, and mandate that transmission or transposition be effected only in dematerialised form; Schedule VI provisions permitting re materialisation and physical certificate delivery are removed.

Internal recruitment priority revised, capped deputation and contract appointments limit external fills under amended staff composition rules.
The amendment substitutes the Schedule entry to specify that two thirds of posts are to be filled from internal candidates and the remaining one third may be filled by deputation or contract, with a ceiling that not more than three posts may be filled by deputation/contract, thereby limiting external fills and maintaining internal recruitment priority.

Regulatory relaxation power allows Board to grant procedural or technical exemptions subject to conditions and investor market safeguards.
The amendment authorises the Board to grant relaxation from strict enforcement of any provision of the Foreign Portfolio Investors Regulations, 2019 suo motu or on application for reasons recorded in writing, when non-compliance arises from factors beyond the entity's control or is procedural or technical, subject to conditions in the interests of investors and securities market development; applications must include a non-refundable fee payable to the Board by RBI permitted modes into the Board's designated account.

Settlement proceedings reform expands condition precedent enforcement and allows market access restrictions as settlement terms.
Amendments revise settlement procedure by adding express condition precedent requirements, expanding rejection grounds for applications including non-compliance with Internal Committee timelines, authorising temporary restrictions on market access as settlement terms, directing payment through a dedicated payment gateway, reframing invalidation grounds to defects in procedure or determination of settlement terms, clarifying recoverable amounts include profits gained or losses avoided, and materially revising Schedule conversion factors and base amounts for calculating settlements.

Non institutional investor allocation rules clarified; reserved sub categories, minimum allotment, pricing cap and valuation safeguards introduced.
Amendments impose caps on proceeds used for general corporate purposes and unidentified acquisitions-35% generally and 25% where targets are not identified unless specific targets and disclosures exist; prescribe non institutional investor allocation in book building with one third reserved for smaller non institutional applications and two thirds for larger ones plus minimum allotment and proportionate allocation rules; require valuation by an independent registered valuer for preferential issues causing change in control or large post issue holdings, and mandate publication and director committee recommendation where control may change.