APAC Monthly Private Wealth Legal Developments – August 2025 - Commodities/Derivatives/Stock Exchanges

Australia

ASIC cancels AFS licence of MWL Financial Services

The ASIC has cancelled the MWL Financial Services' licence for operating a 'low cost advice project' from 2021 to receive referrals from telemarketers/lead generators, and to recommend clients invest their superannuation in Shield.

ASIC has accused MWL of a number of compliance failures, including not taking reasonable steps to ensure its advisers provided advice that was appropriate and in the best interest of the client, providing template statements of advice that contains misleading representations of Shield's past performance and failing to have adequate arrangements in place to manage conflicts of interest.

MWL has the right to apply to the Administrative Review Tribunal for a review of ASIC's decisions. [28 August 2025]

ASIC launches consultation on modernising trading systems rules to keep pace with technology and AI

ASIC has launched a consultation on proposed changes to modernise market integrity rules (MIRs) governing market participants' trading systems and automated trading. ASIC explains that the proposals aim to:

keep pace with developments in technology, including AI;
streamline and reduce complexity by applying consistent rules to any trading systems used by participants, irrespective of how orders are generated or submitted; and
harmonise trading system rules and safeguards across the securities and futures markets and align ASIC's rules framework with the IOSCO principles and international best practice on algorithmic trading.

ASIC's proposed rule changes would extend the principles-based rules for trading systems to participants' development, testing, use and monitoring of their trading algorithms and require 'kill switches' to enable immediate suspension of aberrant trading algorithm activity.

ASIC also proposes to repeal some obsolete rules and reduce complexity as part of its focus on streamlining the MIRs, including repealing the automated order processing annual notification to ASIC requirement. To further ease regulatory burden, ASIC will provide a conditional class no-action position from this requirement to securities participants for annual notifications due from November 2025.

Feedback on the proposals is requested by 22 October 2025. [27 August 2025]

ASIC commences civil proceedings against a superannuation trustee

ASIC has commenced proceedings in Federal Court against a superannuation trustee for alleged failures in due diligence that ASIC considers should apply when a superannuation trustee makes a new investment product available for selection, or permits increased exposure to an investment product, by members and their financial advisers on a superannuation platform.

ASIC alleges that the trustee failed to:

exercise the same degree of care, skill and diligence as a prudent superannuation trustee would;
act in the best financial interests of its members; and
do all things necessary to ensure the financial services covered by its Australian financial services licence were provided efficiently, honestly and fairly.

This is the first action against a superannuation trustee in relation to this set of investigations. [26 August 2025]

ASIC sues superannuation fund alleging systemic failure to report member services investigations

The ASIC has commenced proceedings in the Federal Court against one of Australia's largest superannuation funds alleging a longstanding and systemic failure to report investigations into serious member services issues, including incorrect insurance premium refunds for dead members and updates to member information not being processed.

ASIC alleges that between October 2021 and September 2024, the fund had inadequate systems in place to manage and monitor critical issues and comply with the reportable situations regime, which requires Australian financial services licensees to promptly report ongoing investigations into significant breaches of their core obligations. ASIC also alleges that the Fund provided false or misleading information in reports to ASIC which understated the number of impacted members. However, ASIC has expressly stated in its pleading that it does not allege that the Fund set out to deliberately mislead ASIC in respect of the matters set out in the claim. 

ASIC noted that member services failures in the superannuation sector is one of its 2025 enforcement priorities, and that work is underway to review and simplify the reportable situations regime.

ASIC is seeking declarations and penalties from the Court. [14 August 2025]

ASIC to review superannuation investment requirements

ASIC has commenced a review into the requirements to disclose stamp duty payments in Regulatory Guide 97 (Disclosing fees and costs in PDSs and periodic statements). This review aims to address concerns that the disclosure impacts performance test results and thereby discourages investment in property by Australia's superannuation funds.

ASIC Chair Joe Longo said that the review will consider the regulations which govern the calculation of fee-adjusted returns and whether class order relief should be given to bring consistency to how internally and externally managed private credit arrangements are disclosed. Mr Longo noted that 'if the review finds appropriate changes will deliver benefits without undermining disclosures, then ASIC will act'.

The review will be led by ASIC and include industry representatives and Treasury. The review panel will seek direct submissions from experts and key stakeholders. The review will report by 30 November 2025. [13 August 2025]

APRA releases notes on superannuation CEO roundtable

The APRA has released its notes from the superannuation industry roundtable it hosted in July 2025 which focussed on the recent cyber incidents impacting several superannuation entities.

APRA outlined its key observations and expectations on cyber resilience including:

reinforcing its recently communicated expectations on authentication controls; and
highlighting the value of a proactive cyber security approach, including a clear understanding of control environments and clear accountability for member protection

The roundtable also included commentary from key government agencies and reflections from impacted superannuation entities. Some key reflections included:

the importance of clear and timely communications and having a well-developed incident response plan;
the value of third-party experts in providing the necessary skills and knowledge to enable a collaborative and rapid response; and
the assistance of the National Office of Cyber Security's Financial Sector playbook which outlines how it can support entities impacted by a cyber incident. [11 August 2025]

ASIC: Diversifying Australia's capital markets

ASIC has announced that it is advancing several regulatory changes aimed at diversifying Australia's capital markets and improving access for both domestic and international investors.

ASIC is close to finalising its review of a listing market application from Cboe Australia, which currently facilitates trading in ASX-listed securities and exchange-traded products. If approved, this would introduce a new listing venue, increasing competition and investor options.

In addition, ASIC is expanding the list of approved foreign markets to include Cboe's US and Canadian exchanges, as well as the CSE, which is in the process of acquiring the National Stock Exchange of Australia. These changes will allow Australian investors to engage in certain transactions on these platforms.

ASIC is also examining ways to simplify dual listings for foreign companies and reviewing other proposals aimed at attracting international businesses to Australia's public markets. [6 August 2025]

ASIC proposes to remake relief instrument for managed investment product consideration

ASIC has announced that it plans to remake ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847, which is due to sunset on 1 October 2025.

The instrument modifies requirements relating to the pricing of interests in managed investment schemes registered before October 2013. It specifically addresses how responsible entities may set the amount of the consideration to acquire interests in a scheme in certain circumstances and how they may exercise discretion in relation to a formula or method used for determining the issue price or withdrawal amount.

ASIC proposes to extend the instrument and make minor changes designed to:

simplify the requirements to document exercises of discretion affecting the pricing of interests; and
reduce the level of prescription in those documentation provisions.

Feedback on the proposals was requested by 29 August 2025. [5 August 2025]

FSC responds to Treasury consultation on CSLR special levy

The FSC has issued a statement in response to Treasury's consultation on a proposed special levy to address a significant funding shortfall in the Compensation Scheme of Last Resort (CSLR).

The CSLR supports victims of financial misconduct when all other avenues to recover money are exhausted. On 4 July 2025, the CSLR operator advised that claims costs for personal advice in 2025–26 are expected to reach $67.3 million - well above the legislated $20 million levy cap for the advice sub-sector.

Treasury is now consulting on statutory options to manage the excess and ensure the scheme's sustainability. Submissions are open until 29 August 2025

The FSC raised concerns about the sustainability of the scheme, noting that the estimated annual cost has increased from $8.1 million to $75.7 million. It highlighted that the personal advice sector, which bears the bulk of the cost, has shrunk by 44 per cent since 2019.

The FSC has encouraged Treasury to ensure the scheme is financially controlled before imposing any special levy. It warned that underwriting investment losses could entrench moral hazard and instead called for the cost to be spread broadly across the industry to avoid overburdening compliant sectors. [1 August 2025]

Hong Kong

SFC reprimands and fines registered institution HK$23.8 million for regulatory breaches relating to overcharging of clients, inadequate disclosure in research reports, and incorrect assignment of product risk ratings

The SFC has reprimanded and fined a registered institution HK$23.8 million for multiple regulatory breaches, following investigations prompted by the institution's self-reports to the SFC between December 2020 and December 2023.

The SFC found that the registered institution had:

Failed to apply the discounted management fee rates agreed with clients to 39 discretionary portfolio management accounts between June 2016 and September 2022, resulting in management fees totalling around US$5 million being overcharged to these accounts;
Incorrectly valued 392 floating rate debt instruments between November 2015 and December 2020, resulting in 92 clients being overcharged total custodian and management fees of EUR10,988;
Overstated or understated the valuations of 16 private equity funds and 3 real estate funds in monthly statements sent to 233 clients between May 2022 and November 2023, resulting in 32 clients being overcharged total custodian fees of US$493;
Failed to disclose its investment banking relationships in 261 single stock company reports and 1,590 industry reports issued between September 2014 and September 2021; and
Incorrectly assigned a lower product risk rating to 40 exchange-traded funds between August 2012 and December 2020, which impacted 265 transactions involving 93 clients.

The above constituted breaches of various requirements under the SFC's main code of conduct by the registered institution, which had failed to:

Act with due skill, care and diligence, in the best interests of its clients and the integrity of the market;
Ensure that any representations made and information provided to its clients are accurate and not misleading;
Ensure compliance with the disclosure requirement in its research reports; and
Comply with all relevant regulatory requirements applicable to the conduct of its business activities to promote the best interests of its clients.

The SFC notes (among other things) that the institution had conducted reviews to identify the root causes and extent of the breaches, remediated the issues and strengthened its internal controls and systems upon identifying the breaches, as well as refunded the overcharged fees to affected clients. [28 August 2025]

HKMA issues circular regarding rebranded e-banking security initiative, sharing good practices and highlighting upcoming initiatives

The HKMA has issued a circular regarding its initiative 'E-Banking Security ABCD', which has been re-branded from 'E-Banking Security ABC' (see our previous update). The new 'D' stands for 'Deepfake detection', whereas the existing 'A', 'B' and 'C' stand for 'Authenticate In-App', 'Bye to unused functions', and 'Cancel suspicious payments' respectively.

As part of its efforts to strengthen the Hong Kong banking sector's capability to combat deepfake-related modus operandi, especially those targeting the identity verification solutions deployed by banks, the HKMA has launched a number of initiatives, including the Generative Artificial Intelligence (GenA.I.) Sandbox in collaboration with the Hong Kong Cyberport Management Company Limited in August 2024 (see our previous update), an Anti-Digital Fraud Workshop with the Hong Kong Police Force (Police), Digital Policy Office and the Hong Kong Association of Banks in November 2024, and a new GenA.I. Collaboratory series (including a tailored cross-sectoral engagement session in July 2025 on deepfake prevention).

Authorised institutions (AIs) have actively participated in these initiatives, and taken onboard the insights and learnings shared. The HKMA's regular engagement with AIs showed that those that adopted relevant solutions and good practices (as summarised in the Annex to the circular) improved their capability to detect sophisticated, real-time deepfake attacks by more than 95% in number. The identified fraud and scam cases have been shared by AIs with the Police, and facilitated law enforcement investigations and enabled early identification of emerging deepfake-related tactics before further proliferation.

As the first initiative under measure 'D', the HKMA expects AIs to review the relevance of the above good practices to their institution and take appropriate action to enhance their deepfake detection capabilities.

Looking ahead, the HKMA will continue to roll out new initiatives under measure 'D':

The HKMA will keep the good practices under regular review, and will provide practical utilities to enhance AIs' anti-deepfake capabilities.
The second GenA.I. Sandbox cohort, themed 'A.I. versus A.I.', is open for application until 31 August 2025. Insights from this cohort will be shared in future GenA.I. Collaboratory sessions and/or in the form of further practical guidance, as appropriate.
Leveraging on the memorandum of understanding signed between the HKMA and the School of Business and Management of the Hong Kong University of Science and Technology in May 2025, efforts will be made to deliver resources that support growth in the industry's anti-deepfake capabilities (more details to be announced). [25 August 2025]

SEHK announces seminars by SSE and SZSE on Northbound Program Trading Reporting Guidelines and surveillance-related matters

The Stock Exchange of Hong Kong Limited (SEHK) has issued a circular regarding the seminars it has arranged in relation to the Northbound Program Trading Reporting Guidelines published by the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE) on 11 July 2025 (see our previous update).

The seminars will be conducted by the SSE and SZSE surveillance teams on 15 and 17 September 2025 and are intended to facilitate China Connect exchange participants (CCEPs) and trade through exchange participants' (TTEPs) understanding of the reporting guidelines and related surveillance arrangements and monitoring practices.

Enrolment is on a first-come first-served basis, with a maximum of two seats per CCEP/TTEP. Responsible officers and compliance professionals are encouraged to attend one of the sessions (the two sessions cover the same content). Registration was required to be completed online by 29 August 2025. [22 August 2025]

HKSCC recalibrates SVaR confidence interval to 99.0%, taking effect on 2 September 2025

The Hong Kong Securities Clearing Company Limited (HKSCC) has issued a circular regarding the recalibration of the stress value-at-risk (SVaR) confidence interval.

Following a review of the SVaR component of the value-at-risk based margin model, the HKSCC will recalibrate the SVaR confidence interval from the current 98.0% to 99.0%, taking effect on 2 September 2025.

On 2 September 2025, the new SVaR confidence interval will be effective at start-of-day, applying to intra-day margin simulations, end-of-day margin estimations and end-of-day margin requirements, but not the intra-day marks call at 11:00 am.

To maintain consistency and robustness, the HKSCC will conduct annual reviews of the SVaR confidence interval and communicate any future changes to clearing participants via circular. Further details regarding the initial margin calculation for the HKSCC can be found in the Initial Margin Calculation Guide. [19 August 2025]

SFC imposes 12-month ban and HK$400,000 fine on director and substantial shareholder (and previous MIC) of former licensed corporation for AML/CTF-related failures in managing private funds

The SFC has banned Ms Zhu Hong, a substantial shareholder, director and former manager-in-charge (MIC) of Kylin Internation (HK) Co., Limited (Kylin) from engaging in any regulated activities for 12 months and fined her HK$400,000 for failures in managing various private funds.

Ms Zhu was Kylin's MIC for (i) anti-money laundering and counter-terrorist financing (AML/CTF), (ii) risk management, and (iii) finance and accounting during various periods between 30 April 2019 and 22 January 2025.

Whilst Ms Zhu has not been a licensed individual under the Securities and Futures Ordinance (SFO), she can be disciplined by the SFC as she falls within the definition of a 'regulated person' under the SFO, which includes a person who is, or was at the relevant time, involved in the management of the business of a licensed corporation.

Between August 2018 and July 2021, Kylin was the investment manager and/or consultant of sub-funds of a Cayman-incorporated fund. Ms Zhu was responsible for (among other things) approving borrowing agreements on behalf of the sub-funds and implementing internal control procedures to prevent money laundering and terrorist financing. The SFC's investigation found that she had failed to discharge her duties as Kylin's director and MIC for AML/CTF in managing the funds in question.

The SFC's disciplinary action against Ms Zhu is related to a disciplinary action against another related entity concerning the management of funds in question. Given this action is still ongoing, details of the action against Ms Zhu are yet to be disclosed in full. [18 August 2025]

HKMA encourages AIs to make early preparations for transition to T+1 settlement cycle for Hong Kong cash equity market

The HKMA has issued a circular to encourage authorised institutions (AIs) to make early preparations for the transition to an accelerated settlement cycle for the Hong Kong cash equity market.

The HKMA reminds AIs of the benefits of a transition to a T+1 settlement cycle (from the current T+2), as discussed in the HKEX's paper titled 'Accelerated Settlement for the Hong Kong Cash Market' published on 16 July 2025 (see our previous update). While the HKEX will engage market participants (including banks) in further discussion, the HKMA sees merits in reminding AIs to make early preparations, given that the banking sector plays an important role in the transition.

The HKMA advises AIs to:

Carefully consider how the accelerated settlement may impact their business activities and relevant operations, liquidity and funding arrangements, and provision of services and support for their clients, particularly in the light of significant participation of international investors in the Hong Kong equity market;
Where necessary, allocate sufficient resources for enhancing their operations, systems and infrastructure, and engage with their service providers and system vendors to prepare for the shorter settlement cycle; and
Work closely with the HKEX and other market participants during the process, such as taking part in industry-wide testing, to facilitate a smooth transition.

The HKMA will continue to monitor developments and may provide further guidance to AIs in support of their transition to the T+1 settlement cycle. [18 August 2025]

SEHK publishes File Interface Specification on Northbound Program Trading Reporting under Stock Connect

With reference to its circular dated 11 July 2025 (see our previous update), and to facilitate the preparation for the implementation of the Northbound Program Trading Reporting under Stock Connect, the Stock Exchange of Hong Kong Limited (SEHK) has issued a circular requesting China Connect exchange participants and trade-through exchange participants to note the publication of the File Interface Specification on Northbound Program Trading Reporting on its dedicated website. Participants should refer to this website for the latest versions of technical documents. [15 August 2025]

SFC issues circular to set out expected standards on custody of virtual assets by VATP operators

The SFC has issued a circular to licensed virtual asset trading platforms (VATPs), outlining its expected standards for the safe custody of client virtual assets by SFC-licensed VATP operators and their associated entities (collectively, platform operators). This initiative is part of the SFC's 'ASPIRe' roadmap (see our previous update), specifically Pillar 'S' (Safeguard), aimed at laying a solid foundation for the industry's transition to more advanced custody technologies.

The SFC notes that multiple cases of custody vulnerabilities have arisen overseas, and that its review aimed at evaluating VATPs' resilience against cybersecurity threats earlier this year had revealed inadequacies in some operators' controls. It therefore sees the need for platform operators to critically review and strengthen their custody practices.

Multiple cybersecurity incidents at overseas virtual asset platforms, resulting in significant client asset losses, have highlighted key weaknesses in wallet infrastructures and controls, such as compromised third-party wallet solutions, insufficient transaction verification processes, and inadequate access controls over approval devices.

In its circular, which takes immediate effect, the SFC provides examples of good practices along with its expected minimum standards which platform operators must meet, covering the following areas:

Senior management responsibilities;
Client cold wallet infrastructure and operation;
Use of wallet solution and third-party provider;
Ongoing real-time threat monitoring; and
Training and awareness.

Platform operators should critically assess their virtual assets custody framework, procedures, and controls to ensure compliance with the expected standards. Adherence to these requirements should form part of platform operators' annual external compliance and technology assessment. [15 August 2025]

SFC and HKMA issue joint statement in light of recent abrupt market movements linked to stablecoin concept

The SFC and the HKMA have issued a joint statement regarding recent market movements in relation to stablecoins.

The two regulators have noted recent abrupt market movements linked to the stablecoin concept, which appear to follow corporate announcements, news reports, social media posts or speculations regarding plans to apply for stablecoin issuer licences, engage in related activities or explore the feasibility of stablecoin initiatives in Hong Kong. Some of these claims also mentioned recent engagements with Hong Kong financial regulatory authorities.

The HKMA reiterates that it adopts a robust and prudent approach (with a reasonably high bar) in considering applications for stablecoin issuer licences. An indication of interest or application for a stablecoin licence and communications with the HKMA are just part of the licensing process. The granting of a stablecoin licence will ultimately be determined by the fulfilment of the relevant licensing criteria. Market participants are reminded to exercise responsibility in public communications and refrain from making statements that could mislead investors or create unrealistic expectations.

The HKMA and the SFC urge the public to exercise caution, conduct thorough research, and refrain from making irrational investment decisions based solely on market hype or price momentum.

The SFC's dedicated market surveillance team will closely monitor trading activities in Hong Kong and will take stringent actions against any manipulative or deceptive practices that may compromise the integrity of the market. [14 August 2025]

SFC updates FAQs relating to OFCs

The SFC has updated its FAQs relating to open-ended fund companies (OFCs):

Question 20 has been revised – It discusses whether OFCs are qualified for the mutual fund recognition arrangements entered into by the SFC
A new Question 24A has been added – It discusses what an SFC-licensed corporation or registered institution acting as a custodian of a private OFC should take note of from an anti-money laundering and counter-financing of terrorism perspective when making payments to or receiving money from third parties on behalf of the OFC. [11 August 2025]

SFC issues circular regarding HKTR's notice on updated technical specifications for implementation of ISO 20022 for OTC derivatives trade reporting

The SFC has issued a circular to remind licensed corporations about the Hong Kong Trade Repository (HKTR)'s notice of 8 August 2025 in relation to the publication of updated technical specifications for over-the-counter (OTC) derivatives trade reporting – version 1.0.3 of the Administration and Interface Development Guide (AIDG).

The revised AIDG will take effect on 22 September 2025, ahead of the implementation of the ISO 20022 reporting requirements on unique transaction identifier, unique product identifier and critical data elements on 29 September 2025 (see our previous update). This is to provide reporting entities an option to make an early transition to the ISO 20022 standard. They are required to complete the prescribed simulation test followed by submitting a readiness declaration form by 12 September 2025.

The key changes in the revised AIDG include (i) corresponding changes in some business validation rules, (ii) expansion of the scope of format and allowable values of some data elements, and (iii) a streamlined update process in the supplementary data element block of the usage guidelines.

Reporting entities should refer to the HKTR Info Page for more information and any further updates. [11 August 2025]

HKSCC makes available supplemental information for implementation of USM

The Hong Kong Securities Clearing Company Limited (HKSCC) has issued a circular to inform participants of new and updated information for the implementation of the uncertificated securities market (USM), following its earlier circular of 2 October 2024 (see our previous update).

To assist clearing participants and custodian participants in their preparation for the USM, various materials are provided on the USM dedicated webpage, including updated and new CCASS Terminal User Guides and frequently asked questions (which will be updated periodically). A supplementary information paper is tentatively scheduled for release in late September 2025, followed by briefing sessions in the fourth quarter of 2025. [7 August 2025]

HKSCC reminds participants of obligations relating to deposit of securities

The Hong Kong Securities Clearing Company Limited (HKSCC) has issued a circular to remind participants of the importance of implementing robust control measures to ensure that all deposit orders are properly verified for authenticity and eligibility, to ensure compliance with the General Rules of HKSCC and the HKSCC Operational Procedures (see HKEX webpage) and all other relevant requirements.

Under Rule 805 of the General Rules of HKSCC, each participant depositing eligible securities into CCASS represents and warrants to HKSCC that such securities exist, are validly issued, and that the participant is entitled or has full authority to deposit and deal with such securities.

The HKSCC expects participants to establish internal controls and procedures to ensure compliance with the following requirements before submitting a deposit order to the CCASS Depository:

A Stock Deposit Form is completed for each eligible security to be deposited; and
All deposit orders are accompanied by the corresponding share certificates, instruments of transfer, and any other documents required by the HKSCC (which should be accurate, valid, and organised in the prescribed sequence). [6 August 2025]

Thailand

SECT consults on principles and draft amendments to regulations in relation to operational guidelines for asset managers

The SECT has published a consultation on proposed principles and draft amendments to the regulations on operational guidelines for asset management companies (AMCs). The proposed amendments introduce additional options for compensation in cases where the calculation of the investment unit value or price is incorrect. [22 August 2025]

SECT launches TouristDigiPay sandbox

The SECT, in collaboration with the Ministry of Finance, AMLO, and Ministry of Tourism and Sports, has launched a sandbox project to enable the conversion of digital assets into Thai Baht for spending via e-money. The project, which is known as 'TouristDigiPay', provides an option for foreign tourists to use digital assets as a source of funds for their spending in Thailand. It will run for 18 months, and will launch in Q4 2025. [18 August 2025]

India

SEBI consults on CAS design

The SEBI has published a consultation paper entitled Introduction of Closing Auction Session (CAS) in the Equity Cash Segment. The consultation concerns proposed revisions to the CAS design and permitting passive mutual funds to undertake overnight borrowing.

Comments are requested by 12 September 2025. [22 August 2025]

SEBI consults on review of block deal framework

SEBI has published a consultation with proposed changes to the block deal framework, which relates to the execution of large trades through a single transaction without putting either the buyer or seller in a disadvantageous position.

Comments are requested by 15 September 2025. [22 August 2025]

SEBI consults on implementation of eligibility criteria for derivatives on non-benchmark indices

SEBI has published a consultation paper on the implementation of eligibility criteria for derivatives on non-benchmark indices. SEBI has stipulated prudential norms for non-benchmark indices and the paper considers the approaches evaluated by stock exchanges with regard to operationalising those requirements for existing non-benchmark indices containing derivatives contracts.

Responses are requested by 8 September 2025. [18 August 2025]

SEBI extends deadlines for implementation of 'Margin obligations to be given by way of pledge/Re-pledge in the Depository System'

SEBI has decided to extend the deadline from September 1, 2025 to October 10, 2025 for implementation of its requirements as set out in the June 3, 2025 circular on margin obligations to be given by way of pledge or re-pledge in the depository system. The action is in response to representations made by depositories; it allows for more system development and testing. [18 August 2025]

RBI: Reserve Bank of India (Know Your Customer (KYC)) (2nd Amendment) Directions, 2025

The Reserve Bank of India (RBI) has published an amendments to its Master Direction, Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016. The amendments include adding a link to frequently asked questions (FAQs) on KYC, incorporating a reference to persons with disabilities, and adding Aadhaar Face Authentication.

The amendments are made with immediate effect. [14 August 2025]

SEBI consults on review of SEBI (Stock Brokers) Regulations, 1992

SEBI has published a consultation on the review of the SEBI (Stock Brokers) Regulations, 1992. The consultation contains proposals to revamp the regulations in order to ease the compliance burden on stockbrokers and harmonise with the Companies Act, 2013. These amendments would also include certain provisions issued via circulars under the regulations.

Responses to the proposals were required to be submitted by 3 September 2025. [13 August 2025]

RBI announces dates for introduction of continuous clearing and settlement on realisation in cheque truncation system

The RBI has announced the dates for the introduction of continuous clearing and settlement on realisation in the cheque truncation system. The transition from the current approach of batch processing will be implemented in two phases: Phase 1 will be implemented on 4 October 2025 and Phase 2 on 3 January 2026.

The RBI advises all banks to be ready to participate in the continuous clearing process and to make their customers aware of the changes. [13 August 2025]

IFSCA: Clarification in relation to foreign currency accounts

The IFSCA has issued a circular regarding the opening of an account of a person resident in India. The circular clarifies that the term 'foreign currency account with a bank outside India' used in the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 shall include an account opened with an IFSC banking unit (IBU) in any of the specified foreign currencies. [13 August 2025]

SEBI: Addendum to consultation paper on review of regulatory framework for RTAs

SEBI has published an addendum to its consultation paper on the review of the regulatory framework for Registrars to an Issue and Share Transfer Agents (RTAs), which was issued on 7 August 2025. The addendum presents an additional proposal to revise the fees paid by RTAs.

Responses are requested by 28 August 2025. [12 August 2025]

IFSCA: Regulatory framework for global access in the IFSC

IFSCA has issued a circular on the regulatory framework for global access in the IFSC. The circular specifies the revised norms and requirements for access to global markets by broker dealers and investors. [12 August 2025]

SEBI consults on review of regulatory framework for registrars to an issue and share transfer agents

The SEBI has published a consultation paper on proposed amendments to the Registrars to an Issue and Share Transfer Agents Regulations, which take into account the changes in the regulatory landscape. Responses are requested by 28 August 2025. [7 August 2025]

SEBI consults on amendments to framework for investment advisers and research analysts

SEBI has published a consultation paper on proposed amendments to the regulatory framework for investment advisers (IAs) and research analysts (RAs) intended to facilitate ease of doing business and addressing practical challenges in the current framework. The proposed measures include:

permitting IAs and RAs to provide past performance to clients;
allowing IAs to provide second opinion to clients on pre-distributed assets;
easing the compulsory corporatisation process for IAs; and
relaxation in education criteria for IAs and RAs

Responses to the consultation are requested by 28 August 2025. [7 August 2025]

RBI: Revised directions on co-lending arrangements

The Reserve Bank of India (RBI) has published revised directions on co-lending arrangements in order to provide specific regulatory clarity on the permissibility of lending arrangements between regulated entities. The directions address prudential and conduct aspects. [6 August 2025]

RBI: Directions on non-fund based credit facilities

The RBI has issued directions aimed at harmonising and consolidating the guidelines covering non-fund based facilities (such as guarantees, letters of credit and co-acceptances) and to broaden the funding sources for infrastructure financing. The directions will come into force from 1 April 2026, or from any earlier date as decided by a regulated entity as per its internal policy. [6 August 2025]

RBI invites comments on draft circular on settlement of claims in respect of deceased depositors

The RBI has published for feedback a draft circular on the settlement of claims in respect of deceased customers. The circular sets out revised regulations intended to streamline procedures and standardise documentation in order to improve the quality of customer service. Comments are requested by 27 August 2025. [6 August 2025]

IFSCA consults on framework for stewardship code

The IFSCA has published a consultation paper on its proposed framework for a stewardship code. Comments on proposed guiding principles are requested by 27 August 2025. [6 August 2025]

IFSCA: Master circulars on capital market intermediaries

The IFSCA has issued master circulars for the following categories of capital market intermediaries in the International Financial Services Centre:

These master circulars aim to promote ease of doing business by providing a one-stop reference for all circulars and guidelines applicable to the capital market intermediaries. They also provide clarity on various operational aspects such as registration process, validity of registration, permissible activities, governance, code of conduct, know your client (KYC), anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines, outsourcing, complaint handling, change in control, periodic reporting, cyber security and resilience, and surrender of registration. [5 August 2025]

SEBI consults on amendment to definition of strategic investor for REITs and InvITs

SEBI has published a consultation paper on its proposal to amend the definition of strategic investor in respect of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). SEBI proposes to widen the definition of strategic investor by providing that an entity considered a qualified institutional buyer under the Issue of Capital and Disclosure Requirements Regulations may apply as a strategic investor. Responses to the proposal were required to be submitted by 22 August 2025. [1 August 2025]

Vietnam

SBV attends seminar on application of AI in policy communication and banking products and services

The State Bank of Vietnam (SBV) has published a summary of a seminar held by the Banking Times on the application of AI in policy communication and banking products and services.

The seminar included several presentations from officials and educators, covering the development of ethical principles for AI development and application, IT system security, and developing human resources. [20 August 2025]

Malaysia

CCOB: Consumer Credit Bill passed by the Dewan Rakyat

The CCOB has announced that the Consumer Credit Bill 2025 (CCB) was successfully passed by the Dewan Rakyat on 21 July 2025. The Bill includes consumer protection measures (including with regard to redress), and responsible lending and innovation provisions.

The next steps involve deliberation and approval by the Dewan Negara, followed by royal assent from the Yang di-Pertuan Agong, before the CCB is officially gazetted.

The CCC is expected to be operational, and the Consumer Credit Act is scheduled to be enacted, in the first quarter of 2026. [19 August 2025]

BNM: Discussion paper on AI in Malaysian financial sector

BNM has published a discussion paper setting out its proposed approach and views on the development and adoption of AI in the Malaysian financial sector. The paper outlines:

BNM's position on responsible AI innovation in the financial sector;

the proposed regulatory approach for AI, as well as industry guidelines on responsible use; and
the general development approach, including priority areas for greater innovation and industry-led collaboration.

Feedback is requested by 17 October 2025. [5 August 2025

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APAC Monthly Private Wealth Legal Developments – August 2025

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