Sebi has floated proposals to simplify the rules for exchange-traded and commodity derivatives, aiming to cut compliance burden and uncertainty. In a discussion paper, it suggests deleting close-to-money (CTM) option series and related norms for commodity options in goods, arguing CTM adds complexity and pricing risk. It also wants fewer mandatory PAC meetings for non-agricultural commodities, down from two annually to one. Further, exchanges could shift contract expiry earlier during disruptions with managing director approval instead of 10-day notice and PAC clearance.
The US SEC has signaled tougher enforcement on private funds, with enforcement chief David Woodcock warning the regulator is focused on risks rather than volume. Key concerns include liquidity problems, fee practices, and conflicts of interest. The SEC says it will prioritize cases carefully to protect investors and markets, and expects firms to ensure representatives understand client needs and product risks.
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SEBI has proposed new flexibility for mutual funds to use intraday borrowings for purposes beyond routine investor redemptions and payouts. However, it has deferred the implementation of the related guidelines to July 15, giving fund houses and stakeholders time to adjust to the updated framework as markets and compliance plans catch up.
SEBI has issued a settlement order in a case involving BofA Securities India, alleging the firm failed to maintain the structured digital database mandated under insider trading regulations. A show-cause notice cited the compliance lapse, while BofA declined to comment on both the settlement order and the allegations. The case centers on record-keeping requirements rather than specific trades.
SEBI is proposing major changes to India’s share buyback framework. Open market buybacks are set to return, while the mandatory role of merchant bankers may be scaled back. The regulator also plans tighter safeguards around promoter shareholding and minimum public shareholding. The overall goal is to simplify buyback execution while strengthening investor protection.
SEBI has unveiled a new rule that labels an index “significant” when mutual funds track it with more than Rs 20,000 crore in daily average AUM for six straight months. The framework is designed to improve transparency and strengthen accountability in index governance. Providers of such significant indices must register with SEBI under the new process.
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The Reserve Bank of India will extend oversight to offshore rupee derivative activity by requiring authorized dealers to report over the counter FX contracts, including deliverable and non deliverable types. The change is meant to improve price discovery and reduce volatility. Implementation will be phased, starting July 2027, giving banks time to adjust their reporting systems.
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