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INDEX
SEBI UPDATES
- Key highlights of the 213th SEBI board meeting
- SEBI strengthens IPO disclosure norms mandating abridged prospectus and QR code requirements
- SEBI specifies regulatory reporting norms for AIFs
RBI & IFSC UPDATES
- RBI amends computation of owned funds for core investment companies
- IFSCA prescribes the fee structure for entities undertaking or intending to undertake permissible activities in IFSC
- IFSCA extends exemptions under the Cyber Security Guidelines for IFSC REs
- RBI revises reporting requirements for ECB
- RBI revises acquisition financing framework
OTHER UPDATES
- MEITY's amendment to the compulsory registration order: compliance relief for highly specialized enterprise electronics
- Press Note 3 of 2020 revisited
- Electricity (Amendment) Rules, 2026: key amendments to captive generating power plant requirements.
SEBI UPDATES
KEY HIGHLIGHTS OF THE 213th SEBI BOARD MEETING
Securities and Exchange Board of India ("SEBI"), at its board meeting held on March 23, 2026, has, inter alia, approved some crucial proposals/ decisions as specified in its press release no. 18/2026 ("Press Release"). The following are the key highlights:
a. Approved the proposal to amend the SEBI (Alternative Investment Funds) Regulations, 2012 ("AIF Regulations") wherein a scheme or an Alternative Investment Fund ("AIF") are permitted to retain liquidation proceeds of portfolio post completion of its tenure. AIFs may retain liquidation proceeds beyond their fund life only if: (i) there is documented evidence of a tax, or regulatory demand or a litigation notice; (ii) at least 75% of investors (by value) consent to retention for anticipated liabilities or (iii) the retained amount is justified for operational expenses with supporting records through invoices or prior year comparables, subject to a maximum retention period of 3 years from end of permissible fund life. These measures aim to reduce the compliance burden on AIFs with no active fund management activity. Further, the AIFs that intend to surrender their registration while having one or more schemes retaining funds in accordance with the conditions specified above shall be tagged as 'inoperative funds', with lighter compliance requirements till surrender of their registration certificate;
b. Approved the proposal to permit net settlement of funds for outright transactions done by Foreign Portfolio Investor ("FPI") in cash market, i.e., transactions in which there is either purchase or sale transactions, but not both, in a security, in a settlement cycle. Non-outright transactions will continue to be confirmed and settled on a gross basis. This aims to enhance operational efficiency and reducing cost of funding for FPIs. This proposal will be implemented on or before December 31, 2026;
c. Approved the amendments to the AIF Regulations to reduce the minimum value of investment by individual investors in social impact fund of AIF to INR 1,000 from the existing INR 2,00,000. These amendments aim to facilitate wider retail participation on social stock exchange;
d. Approved the amendments to the SEBI (Infrastructure Investment Trusts) Regulations, 2014 and the SEBI (Real Estate Investment Trusts) Regulations, 2014 for the following matters:
i. Infrastructure investment trusts ("InvITs"), due to pending claims, litigations, tax assessments, defect liability period under the concession agreement, will be now permitted to continue to hold investment in special purpose vehicles ("SPVs") post conclusion or termination of the concession agreement, subject to certain conditions.
ii. Additional investment options have been introduced for temporary deployment of funds by InvITs and real estate investment trusts to mitigate concentration risk.
iii. Privately listed InvITs will be now permitted to invest up to 10% of the value of their assets in greenfield infrastructure projects.
iv. InvITs with leverage exceeding 49% and up to 70% of the value of their assets will be allowed to avail fresh borrowings for certain additional purposes;
e. Approved the amendments to the 'fit and proper person' criteria specified under Schedule II of the SEBI (Intermediaries) Regulations, 2008, to ensure ease of doing business by market participants. This shifts the existing criteria to a principle-based criteria that only persons with integrity, honesty, ethical behaviour, reputation, fairness and character operate in the securities market. The following are the key amendments to the existing criteria:
<>i. A case-to-case assessment has been adopted in substitution of outright disqualification due to pendency of a criminal complaint/ FIR filed by SEBI or a charge sheet concerning economic offences.
ii. Included conviction for any economic offence or any offence under securities laws as a disqualification.
iii. Removal of mere initiation of winding up as ground of disqualification.
iv. Insertion of a provision for granting an opportunity of being heard before declaring a person as not 'fit and proper', and the default prohibition of 5 years from applying for fresh registration in cases where no time period is specified in the relevant order shall be omitted.
f. Approved the key recommendations of the high-level committee step-up to undertake review of conflict of interest, disclosures and related matters in respect of members and employees of SEBI. These recommendations broadly include uniform application of restrictions on investments and trading, options for existing investments, chairman and whole-time members to be brought within the definition of 'insider', public disclosure of assets and liabilities, establishment of new Office of Ethics and Compliance (OEC), investment restriction on spouse/ dependent family members, limit of 25% on investments with a single intermediary, disclosure requirements to SEBI and recusals relating to material financial interest and other circumstances that may require recusal.
These recommendations shall be implemented by amendments to the SEBI (Employees'
Service) Regulations, 2001, revising the 2008 code on conflict of interest for members of SEBI.
The recommendations pertaining to notifying a separate set of regulations for members of SEBI and oversight of conflict of interest of members of SEBI are reserved for the consideration of the Central Government.
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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.
