SEBI Proposes Overhaul Of STP Messaging Framework To Reduce Delays, Costs

The Securities and Exchange Board of India (SEBI) has proposed changes to its Straight Through Processing (STP) framework for institutional trades, aiming to reduce delays, lower costs, and improve service delivery for market participants.The market regulator on Monday issued a consultation paper proposing a shift from the existing centralized STP messaging framework to a direct Application Programming Interface (API)-based system for communication between STP Service Providers (SSPs). The STP...

SEBI Rejects Bajaj Hindusthan Sugar's Challenge To ₹1,189 Crore Fund Diversion Proceedings

The Securities and Exchange Board of India (SEBI) has recently rejected Bajaj Hindusthan Sugar Ltd.'s challenge to its authority to proceed with a case over alleged diversion of more than ₹1,189 crore through related entities. It held that objections over forensic audit findings, alleged squaring off of loans and delay in initiating action are not grounds to stop the proceedings at the threshold. “The alleged non-consideration of such material by the IA does not render the investigation...

SEBI Floats Proposal To Exempt Research Analysts From Maintaining Call Recordings With Institutional Investors

The Securities and Exchange Board of India (SEBI) has proposed exempting research analysts from maintaining call recordings of interactions with institutional investors, while retaining the requirement for retail clients. In a consultation paper issued on Monday, the market regulator said the proposal follows requests from market participants to review the requirement of recording calls with institutional investors under the research analysts regulatory framework. At present, Regulation...

SEBI Slaps ₹3.1 Crore Penalty Over Alleged Telegram-Based 'Pump And Dump' Scheme In Darshan Orna Shares

The Securities and Exchange Board of India (SEBI) on Friday imposed penalties totalling ₹3.10 crore on five entities after finding that they orchestrated a “pump-and-dump” scheme in the shares of Darshan Orna Limited (DOL) through coordinated trading and stock recommendations circulated on Telegram channels. SEBI Adjudicating Officer Amit Kapoor observed: “I note that in the instant case, it was not merely an insular, closed-loop matched trading scheme, but rather an "Information Asymmetry" or...

SEBI Clarifies FPI PAN Allotment Norms After New Income-Tax Rules Create Compliance Hurdles

The Securities and Exchange Board of India (SEBI) on Friday said the Central Board of Direct Taxes (CBDT) had issued clarifications to address difficulties faced by Foreign Portfolio Investors (FPIs) in obtaining Permanent Account Numbers (PAN) following changes introduced under the Income-tax Rules, 2026. SEBI noted that CBDT had notified the Income-tax Rules, 2026 and new forms for PAN applications on March 20, 2026, making certain previously optional fields mandatory. The regulator said it...

SEBI Expands Permitted End-Use Of InvIT Borrowings Where Net Borrowings Exceed 49% of Asset Value

The Securities and Exchange Board of India (SEBI) on Friday expanded the permissible use of borrowings by Infrastructure Investment Trusts (InvITs) where net borrowings exceed 49% of the value of InvIT assets. SEBI said Regulation 20(3)(b)(ii) of the SEBI (Infrastructure Investment Trusts) Regulations, 2014 was amended on April 17, 2026 to expand the permissible use of such borrowings. Under the circular, borrowings above the 49% limit may now be utilised for capital expenditure undertaken to...

AIFs Without Funds Or Schemes Must File 'NIL' Quarterly Reports; SEBI Cancels Two Registrations

The Securities and Exchange Board of India (SEBI) on Friday cancelled the registrations of India Electronic Development Fund and Domus Capital LLP as Alternative Investment Funds (AIFs) for failure to file mandatory Quarterly Activity Reports (QARs). SEBI's Designated Authority S. Madhusudhanan held that AIFs which have not raised funds or launched schemes are still required to submit NIL quarterly reports within the timelines prescribed under the AIF Regulations and the SEBI Master...

SAT Mumbai Rules Tax Refund Claim Outside Its Jurisdiction, Partly Allows “Pandya Ka Funda” Review

The Mumbai Securities Appellate Tribunal (SAT) on 8 May held that any claim seeking refund of income tax paid on trading gains forming part of disgorgement proceedings must be pursued separately under the Income Tax Act, 1961. Presiding Officer Justice P.S. Dinesh Kumar with Technical Members Meera Swarup and Dheeraj Bhatnagar partly allowed a review application arising from the “Pandya Ka Funda” stock manipulation case but declined to interfere with findings on fraudulent trading and...

Adani Green Bribery Case: Gautam Adani and Sagar Adani Agree To Pay $18 Million To Settle US SEC Proceedings

Industrialists Gautam Adani and Sagar Adani have agreed to pay a total of $18 million in civil penalties to settle a securities fraud case brought by the United States Securities and Exchange Commission (SEC), arising from allegations of bribery and misleading disclosures linked to Adani Green Energy Ltd. and related securities offerings. Gautam Adani agreed to pay $6 million while Sagar Adani agreed to pay $12 million under consent filings submitted before the US District Court for the Eastern...

SEBI Proposes Overhaul Of Exchange-Traded Derivatives Rules, Seeks Simplified and Unified Structure

On 14 May, the Securities and Exchange Board of India (SEBI) issued a consultation paper proposing amendments to the regulatory framework for exchange-traded derivatives, aimed at simplifying compliance, removing redundant provisions, and improving ease of doing business. Among the key proposals, SEBI has suggested deleting provisions on “Close to the Money” (CTM) option series and related norms for “Options in Goods” in commodity derivatives. The master circular currently requires stock...

SEBI Proposes Allowing Municipalities To Refinance Existing Debt Through Bond Issuances

The Securities and Exchange Board of India (SEBI) on Wednesday proposed allowing municipal bodies to refinance existing debt through bond issuances, use part of the proceeds for project-linked working capital, and revise the framework for pooled municipal bond fundraising, as part of a review of the municipal debt securities framework. The proposals form part of a consultation paper seeking amendments to the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015. SEBI has...

SEBI Proposes Wider Use Of Mutual Fund Intraday Borrowings Beyond Redemption Payout Needs

The Securities and Exchange Board of India (SEBI) has proposed recognising intraday borrowing facilities used by mutual funds as a cash management tool. If approved, this would allow mutual funds to use such borrowing lines beyond meeting redemption payout timing mismatches, including for trade settlements, forex settlements and derivative obligations. SEBI said the carve-out for intraday borrowings in the SEBI (Mutual Funds) Regulations, 2026 was enabled after representations from the...