Regulatory Updates & SEBI Guidelines

Welcome to our Regulatory Updates & SEBI Guidelines page, your trusted source for understanding the Securities and Exchange Board of India (SEBI) and its role in shaping India’s financial markets. This page provides an overview of SEBI’s key regulations, recent updates (2024–2025), and practical tips for investors. Stay informed and invest confidently!

What is SEBI?

The Securities and Exchange Board of India (SEBI), established on April 12, 1992, under the SEBI Act, is India’s apex regulator for securities and commodity markets. Headquartered in Mumbai, SEBI’s mission is to:

• Protect investors by ensuring transparency and curbing malpractices.

• Promote market growth through innovation and reforms.

• Ensure market integrity by regulating intermediaries like stockbrokers, mutual funds, and listed companies.

SEBI’s Key Objectives

• Investor Protection: Safeguards investors from fraud, insider trading, and unfair practices.

• Market Development: Introduces new products (e.g., REITs, InvITs) and technology-driven solutions.

• Market Integrity: Enforces fair trading and penalizes violations to maintain trust.

SEBI’s Core Functions

• Regulatory: Formulates rules for market participants, including stock exchanges and brokers.

• Protective: Shields investors through disclosure norms and platforms like SEBI SCORES.

• Developmental: Promotes financial literacy and innovations like T+0 settlement.

• Enforcement: Investigates violations and imposes penalties for non-compliance.

Key SEBI Regulations

SEBI’s regulatory framework covers all aspects of India’s financial markets. Major regulations include:

• SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR): Ensures transparency and governance for listed companies.

• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR): Governs IPOs, rights issues, and disclosures.

• SEBI (Prohibition of Insider Trading) Regulations, 2015: Prevents insider trading with strict monitoring.

• SEBI (Mutual Funds) Regulations, 1996: Regulates mutual funds for investor protection.

• SEBI (Alternative Investment Funds) Regulations, 2012: Oversees private equity and venture capital funds.

• SEBI (REITs and InvITs) Regulations, 2014: Governs real estate and infrastructure trusts.

• SEBI (Index Providers) Regulations, 2024: Regulates index providers like NSE Indices and BSE Sensex.

• SEBI (Foreign Portfolio Investors) Regulations, 2019: Manages FPI investments, including NRIs in GIFT City.

Recent SEBI Updates (2024–2025)

SEBI’s latest guidelines reflect its commitment to investor protection and market efficiency:

• T+0 Settlement (2025): Same-day settlement for top 500 stocks to reduce risks.

• Equity Derivatives Reforms (November 2024): Upfront option premium collection, increased lot size (₹15–20 lakh), and one weekly contract per exchange.

• Weekly Expiry Changes (September 2025): NSE derivatives expiry on Tuesday, BSE Sensex on Thursday.

• Direct Payout of Securities (October 2024–January 2025): Securities credited directly to demat accounts, bypassing brokers.

• Investor Protection:

  • New UPI handle (@valid) for secure payments (October 2024).

  • CeFCoM platform for adviser/analyst payments.

  • SEBI SCORES for complaint redressal.

• Mutual Fund Norms: 20% liquid assets in liquid schemes, fourfold security cover for debt securities.

• IPO Reforms: Simplified rights issues, stricter SME IPO norms to prevent fund misuse.

• Electricity Derivatives (June 2024): Futures trading on MCX for power price stability.

• AI/ML Guidelines (June 2025): Draft rules for responsible AI use in markets.

• Finfluencer Crackdown (January 2025): Penalties for unregistered financial influencers.

• ESOP Review (2025): Ongoing consultation on startup founder ESOPs post-listing.

Other Important Guidelines

• Corporate Governance: Mandates independent directors, audit committees, and timely disclosures.

• Investor Education: SEBI’s workshops and advisories promote financial literacy.

• ESG Compliance: Mandatory sustainability reporting for listed companies.

• Market Surveillance: Rules for algorithmic trading and market manipulation prevention.

• Commodity Derivatives: Regulations for MCX and other commodity exchanges.

• Virtual Stock Gaming Apps: Crackdown on unregulated apps (2024).

Impact on Investors and Markets

• Investors: Benefit from transparency, direct payouts, and grievance platforms like SCORES.

• Markets: T+0 settlement, dematerialization, and tech innovations enhance efficiency.

• Intermediaries: SEBI ensures compliance while fostering innovation.

Challenges and Developments

• Resource Constraints: Limited resources can delay responses to manipulations.

• Coordination Gaps: SEBI is improving collaboration with RBI and MCA.

• Leadership Transition: Tuhin Kanta Pandey became SEBI Chairperson on March 1, 2025, replacing Madhabi Puri Buch.

Tips for Investors

1. Stay Updated: Visit www.sebi.gov.in for circulars and notifications.

2. Use SEBI SCORES: File complaints against listed companies or intermediaries.

3. Review Guidelines: Understand SEBI rules before investing in IPOs, mutual funds, or derivatives.

4. Follow Trusted Sources: Check The Economic Times, Moneycontrol, or verified X posts for updates.

Explore All SEBI Guidelines

This page highlights key SEBI regulations and updates. For a complete list of guidelines, circulars, and notifications, visit www.sebi.gov.in. SEBI’s Master Circulars consolidate rules for mutual funds, intermediaries, and more, ensuring you have access to detailed information.

Disclaimer: Due to the extensive and evolving nature of SEBI’s guidelines, this page covers major regulations and recent updates. For specific or niche guidelines, refer to SEBI’s official website.

Last Updated: June 2025