Legalaxy - Monthly Newsletter - January 2026

INDEX

SEBI UPDATES

• Key highlights of the 212th SEBI board meeting
• SEBI strengthens valuation standards: independent valuers now mandatory
• SEBI mandates NISM certification for compliance officers of managers of AIFs
• SEBI's framework for AI only schemes and relaxations for LVFs for AI

RBI & IFSC UPDATES

• IFSCA clarifies computation of liquid net worth under the CMI Regulations
• IFSCA extends the deadline for implementation of the revised norms for principal officer and compliance officer under the CMI Regulations

CORPORATE UPDATES

• MCA raises small company thresholds to INR 10 crores paid-up capital and INR 100 crores turnover
• MoF notifies the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025

LABOUR UPDATES

• Labour Courts, Industrial Tribunals and National Industrial Tribunals to continue with adjudication
• Extension of scheme to promote registration of employers/ employees.

SEBI UPDATES

KEY HIGHLIGHTS OF THE 212TH SEBI BOARD MEETING

Securities and Exchange Board of India ("SEBI"), at its board meeting held on December 17, 2025, has, inter alia, approved some crucial proposals as specified in its press release no. 84/2025 ("Press Release").

The following are the key highlights:

1. Approved the proposal to replace the SEBI (Stock Brokers) Regulations, 1992 with the SEBI (Stock Brokers) Regulations, 2025 with the objective of streamlining the regulations, omission of repetitive and redundant provisions, updating regulations with contemporary changes and modification/inclusion of certain provisions to provide more clarity and to ensure ease of compliance.
2. Approved the SEBI (Mutual Funds) Regulations, 2026 ("New MF Regulations"), pursuant to the review of the SEBI (Mutual Funds) Regulations, 1996. The key features of the New MF Regulations include simplification and consolidation, enhanced transparency and investor protection, promotion of ease of compliance and deletion of redundant chapters/clauses.
3. Approved the amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 to stipulate that in case lock-in of the specified securities cannot be created, the depositories shall record such securities as "non-transferable" for the duration of the applicable lock-in period. Further, to enhance investor comprehension, a requirement has been introduced to make available a summary of the offer documents in the form of a draft abridged prospectus at the draft offer document (DRHP) stage, in addition to the existing requirement of filing of abridged prospectus at the offer document (RHP) stage.
4. Approved the proposal for amending the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 to permit debt issuers to offer incentives, in the form of additional interest or a discount to the issue price, to certain categories of initial allottees, with the object of increasing participation of retail investors in corporate debt market and also to encourage public issuances in the debt market.
5. Approved the proposal to amend Regulations 39 and 40 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations"). The amendment to Regulation 39 removes the requirement of issuance of a letter of confirmation (LOC) by registrars and transfer agents (RTAs) or listed companies to investors, for processing of specified investor service requests. The amendment to Regulation 40 permits investors holding original physical security certificates, along with the transfer deed executed prior to April 1, 2019, to lodge such transfer deeds, along with original share security certificates during a specified window and subject to such condition as may be specified by SEBI. This would also be subject to necessary due diligence by RTAs or listed companies.
6. Approved the proposal to amend the LODR Regulations to align the timeline with the Companies Act, 2013 ("CA2013") for transfer of unclaimed interest/ dividend/ redemption payment by an entity having listed non-convertible securities to the Investor Education and Protection Fund (IEPF)/ Investor Protection and Education Fund (IPEF).
7. Approved the proposal to amend the SEBI (Credit Rating Agencies) Regulations, 1999 to permit credit rating agencies to carry out rating of financial instruments falling under the purview of other financial sector regulator (FSR), even in the absence of rating guidelines issued by the respective FSR, subject to prescribed safeguards. The objective of this amendment is to ensure availability of ratings for a wider set of financial instruments.
8. Approved the proposal to relax the threshold for identification of high value debt listed entities (HVDLEs). It also approved proposal to amend the LODR Regulations to align corporate governance norms applicable to HVDLEs with recent amendments to corporate governance norms applicable to equity listed entities, with an intent to ensure ease of doing business.
9. Acknowledged the comprehensive review carried out by the high-level committee set up in April 2025 to undertake a review of the provisions relating to conflict of interest, disclosures, and related matters in respect of members and officials of SEBI.

To read the Press Release click here.

To view the full article please click here.

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The content of this article is intended to provide a general guide to the subject matter. Specialist professional advice should be sought about your specific circumstances. The views expressed in this article are solely of the authors of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.