Sebi to revamp master circular for stock exchanges in the coming months, says chief Tuhin Kanta Pandey

Sebi to Revise Master Circular for Stock Exchanges

India's market regulator, the Securities and Exchange Board of India (Sebi), plans to revise the master circular for stock exchanges within the next few months, said Tuhin Kanta Pandey, the chairman of Sebi.

Sebi Proposals

• Simplifying the regulatory framework for stock exchanges and clearing corporations to improve ease of doing business
• Removing outdated rules, reducing compliance costs, and consolidating various directives
• Merging separate master circulars for equity and commodity-derivatives exchanges into a single unified circular
• Issuing a distinct master circular for clearing corporations
• Scrapping provisions such as exchange-code requirements

The master circular, which governs the administration and operations of India's stock exchanges, has evolved into a sprawling rulebook over the years.

Public Feedback and Next Steps

Public feedback on the consultation paper was wrapped up on 29 October, and the overhaul forms part of the regulator's broader agenda of "optimum regulation".

"While making changes in regulations, we will consult widely with all stakeholders for a balanced outcome," said Pandey.

Priority Areas

• Strengthening the corporate bond market, which has expanded to nearly ₹55 trillion
• Developing the commodities market, both agricultural and non-agricultural
• Preparing an end-to-end digital registration framework for foreign portfolio investors (FPIs)
• Simplifying know-your-customer (KYC) requirements for non-resident Indians (NRIs)

Sebi is working to attract more retail investors to fixed-income instruments through targeted awareness initiatives.

Key Initiatives

• Reducing the minimum face value of bonds
• Expanding electronic book-building platforms to cover real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs)
• Developing a comprehensive awareness programme on bonds to bring retail investors to the market

Sebi is also working on delivering a comprehensive overhaul of mutual fund regulations, stockbroker norms, listing obligations and disclosure requirements (LODR) framework, and settlement rules.