India
Legislative and Regulatory Amendments
- Securities and Exchange Board of India (SEBI)
SEBI Launches Document Number Verification System to Combat Fraud
The SEBI introduced the Document Number Verification System to enhance transparency and safeguard investors. This tool enables verification of documents issued by SEBI, helping detect and prevent the circulation of fraudulent or misleading content. Date of Release: 3 April 2025 Implementation on: Immediate Applicable to: Investors, market participants India Completes 2024 FSAP with IMF and World Bank
Completion of the 2024 Financial Sector Assessment Program (FSAP) was announced by SEBI, following its conduct in collaboration with the International Monetary Fund and the World Bank. The programme assessed the stability of India’s financial system, the strength of its regulatory framework, and exposure to systemic risks. SEBI committed to implementing the FSAP’s recommendations to strengthen the country’s financial resilience and sustainability. Date of Release: 5 April 2025 Implementation on: N/A Applicable to: General financial sector SEBI Launches Official Account on X (Formerly Twitter)
To expand investor outreach and improve access to official information, SEBI launched its verified account on the social media platform X (formerly Twitter). Through this channel, SEBI will share timely updates, investor education materials, and official notifications. Date of Release: 8 April 2025 Implementation on: Immediate Applicable to: General financial sector SEBI Introduces ‘1600’ Number Series to Identify Legitimate Calls
Investor protection efforts were furthered with the introduction of a dedicated ‘1600’ number series by SEBI, designed to help investors identify legitimate communication from SEBI-registered entities and reduce scams involving impersonation or misleading calls. Date of Release: 8 April 2025 Implementation on: Immediate Applicable to: Retail investors, market participants SEBI Forms High-Level Committee to Review Conflict of Interest Provisions
A High-Level Committee was formed by SEBI to review and enhance its conflict-of-interest policies and disclosure practices. Chaired by former civil servant Pratyush Sinha, with Injeti Srinivas as vice-chairman, the committee also includes Uday Kotak and G. Mahalingam. The initiative underscores SEBI’s commitment to upholding integrity, transparency, and governance. Date of Release: 9 April 2025 Implementation on: N/A (Committee formed for review) Applicable to: all market participants and intermediaries
IFSCA and NISM Sign MoU to Enhance Financial Education and Capacity Building
The International Financial Services Centres Authority (IFSCA) and the National Institute of Securities Markets (NISM) formalised their cooperation through a Memorandum of Understanding to promote financial education and capacity building. The partnership will facilitate knowledge sharing and joint initiatives to support the development of India’s financial markets.
Date of Release: 2 May 2025 Implementation on: Ongoing Applicable to: Financial market participants, educational institutions SEBI Requires KRAs to Display Investor Charter
Investor awareness regarding Know Your Client (KYC) processes was strengthened through SEBI’s directive requiring all KYC Registration Agencies to publish an Investor Charter on their websites and display it prominently in their offices.
Date of Release: 6 May 2025 Implementation on: Immediate Applicable to: KYC Registration Agencies (KRAs), investors SEBI Warns Against Social Media Investment Scams
Warnings were issued by SEBI about a rise in stock market scams on platforms such as WhatsApp and Telegram, where fraudsters impersonate investment trainers to lure individuals into fraudulent schemes, causing significant financial losses.
Date of Release: 21 May 2025 Implementation on: Immediate advisory Applicable to: Retail investors, market participants
SEBI Directs Market Intermediaries to Enable Inclusive Digital KYC
Market intermediaries were directed by SEBI to make digital KYC services accessible to people with disabilities, ensuring inclusiveness in financial services and aligning with the Supreme Court’s emphasis on equal access. Date of Release: 23 May 2025 Implementation on: Immediate Applicable to: Market intermediaries, investors with disabilities
SEBI and IEPFA Launch First “Niveshak Shivir” to Address Unclaimed Assets
A joint initiative between SEBI and the Investor Education and Protection Fund Authority (IEPFA) saw the launch of the first “Niveshak Shivir” in Pune, aimed at reducing unclaimed assets and assisting investors in claiming unpaid dividends and shares. Over 450 investors participated, receiving on-the-spot help with KYC updates and claim processing. Date of Release: 2 June 2025 Implementation on: 2 June 2025 Applicable to: Retail investors, shareholders with unclaimed dividends or shares SEBI Introduces Validated UPI Handles and “SEBI Check” Tool to Prevent Payment Fraud
Investor payment security measures were enhanced with the launch of “Validated UPI Handles” and the “SEBI Check” tool, requiring investors from October 2025 to use UPI IDs ending in “@valid” when paying registered intermediaries. A verification icon and SEBI Check portal will further ensure authenticity.
Date of Release: 11 June 2025 Implementation on: 1 October 2025 Applicable to: Investors, registered intermediaries, payment platforms SEBI Launches CeFCoM for Centralised Fee Payment to Investment Advisers and Analysts
Transparency in adviser and analyst payments was promoted through SEBI’s introduction of the Centralised Fee Collection Mechanism (CeFCoM), a secure payment system for transactions between investors and registered Investment Advisers or Research Analysts. Date of Release: 12 June 2025 Implementation on: 12 June 2025 Applicable to: Investment Advisers, Research Analysts, retail investors
SEBI Approves NPCI’s ‘e-KYC Setu System’ for Aadhaar-Based Digital KYC
SEBI approved the use of the National Payments Corporation of India’s (NPCI) ‘e-KYC Setu System’ to enable Aadhaar-based digital KYC for registered intermediaries, simplifying and accelerating investor onboarding.
Date of Release: 30 June 2025 Implementation on: 30 June 2025 Applicable to: Registered intermediaries, new investors, KYC service providers SEBI Issues Master Circular for Stock Brokers
A consolidated Master Circular for Stockbrokers was issued by SEBI, bringing together and updating all applicable regulatory guidelines, including provisions on registration, compliance, risk management, and investor grievance redressal. Date of Release: 17 June 2025 Implementation on: 17 June 2025 Applicable to: Stockbrokers, trading members, compliance officers
- Reserve Bank of India (RBI)
No relevant regulatory news found this quarter
Consultations
- Securities and Exchange Board of India (SEBI)
A draft circular has been released by SEBI outlining proposed changes to simplify the process of converting private listed Infrastructure Investment Trusts (InvITs) into public InvITs. Key revisions include removing minimum sponsor contribution and lock-in requirements, along with aligning disclosure norms to those for follow-on offers rather than initial offerings. Consultation Period: 1 July 2025 – 22 July 2025 Applicable to: Sponsors and unitholders of private listed InvITs, and market participants involved in InvIT conversions
To enhance fundraising efficiency on the Social Stock Exchange, SEBI has proposed the creation of a dedicated Electronic Book Provider (SSE-EBP) platform for non-profit organisations. The framework would mandate standardised bidding, disclosure, and settlement processes for issuances above ₹50 lakh, along with KYC requirements and penalties for defaults. Consultation Period: Until 24 July 2025 Applicable to: Not-for-Profit Organisations, Social Stock Exchanges, investors, and SSE-EBP platform operators
Consultation Paper on Measures for Regulation of Activities of Credit Rating Agencies (CRAs)
Public feedback is being sought on proposals to broaden the permissible activities of Credit Rating Agencies to cover instruments regulated by other sectoral bodies and certain unlisted products. Safeguards include creating separate business units, enforcing independence protocols, and enhancing disclosure practices.
Consultation Period: Until 30 July 2025 Applicable to: Credit Rating Agencies, issuers of financial instruments, and investors relying on CRA ratings
Consultation Paper on Categorisation and Rationalisation of Mutual Fund Schemes
SEBI has tabled changes to the mutual fund categorisation framework aimed at reducing scheme overlaps, improving investor clarity, and allowing targeted innovation. Proposals feature overlap caps, clearer naming conventions for debt funds, and conditions for launching multiple schemes under one category. Consultation Period: Until 8 August 2025 Applicable to: Asset Management Companies, mutual fund investors, and financial intermediaries
Consultation Paper for Review of LODR Regulations – Measures towards Ease of Doing Business
Amendments are being considered to align and simplify disclosure timelines under the LODR framework, particularly in relation to annual reports for debenture holders. The proposals seek to close timing gaps in current provisions and provide consistent standards across entities.
Consultation Period: Until 15 August 2025 Applicable to: Issuers of non-convertible securities, debenture holders, and listed entities outside the Companies Act
Consultation Paper on Facilitating Ease of Doing Business in IPOs under ICDR Regulations 2018
A review of IPO allocation norms has been proposed to rebalance participation between institutional and retail segments, especially for large offerings. Measures include adjusting quota percentages, expanding anchor investor slots, and reserving portions for domestic long-term institutional investors.
Consultation Period: Until 21 August 2025 Applicable to: IPO issuers, anchor investors, retail investors, and market intermediaries
- Reserve Bank of India
No consultation found for this quarter
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.