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...

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...

SEBI Orders Former Religare Chair Rashmi Saluja To Disgorge ₹1.99 Crore In Insider Trading Case

The Securities and Exchange Board of India (SEBI) on Wednesday directed former Religare Enterprises Limited (REL) executive chairperson Rashmi Saluja to disgorge ₹1.99 crore for insider trading in REL shares linked to the Burman Group's open offer. It has also imposed a ₹40 lakh monetary penalty on her. SEBI Whole Time Member Kamlesh C Varshney passed the order, holding that Saluja sold REL shares while in possession of unpublished price-sensitive information (UPSI) relating to the Burman...

SEBI Proposes Higher Client Position Limits For Agricultural Commodity Derivatives

The Securities and Exchange Board of India (SEBI) has proposed increasing client position limits for agricultural commodity derivatives while revising the penalty framework for breaches of those limits. Position limits cap the number of contracts a trader can hold in a commodity at any given time. SEBI said these limits are meant to curb excessive speculation, prevent concentration of positions in the hands of a few participants, and reduce systemic risk. At present, agricultural commodities...

SEBI Proposes Phased Physical Settlement For Select Agricultural Commodity Derivatives Contracts

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing a phased introduction of physical settlement for select agricultural commodity derivatives contracts. Under the proposal, certain delivery-based agricultural commodity contracts could begin trading as financially settled instruments, with a mandatory shift to physical settlement once predefined thresholds are met. SEBI has sought stakeholder comments on the proposed pilot framework, which is aimed at...