SEBI has also proposed merging the two disclosure frameworks and clarifying that bulk deal information should be disseminated at the client level, mapped to PAN, rather than at the unique client code level
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ABEER KHAN
The Securities and Exchange Board of India (SEBI) has proposed a wide-ranging overhaul of trading-related rules for stock exchanges, aimed at simplifying regulations, removing duplication and reducing compliance costs, as part of its ease of doing business agenda.
The regulator has suggested consolidating and rationalising provisions under Chapter 1 (Trading) of the master circular for stock exchanges and clearing corporations, along with relevant sections of the commodity derivatives master circular. The proposed framework would apply uniformly across equity cash, equity derivatives and commodity derivatives segments.
SEBI has also proposed merging the two disclosure frameworks and clarifying that bulk deal information should be disseminated at the client level, mapped to PAN, rather than at the unique client code level. Since exchanges already have access to client-level data, this would reduce back-and-forth with brokers while ensuring the original regulatory intent of transparency, the regulator said in a draft paper on Friday.
MTF norms
In margin trading, SEBI has proposed raising the minimum net-worth requirement for brokers offering margin trading facility (MTF) to ₹5 crore from the current ₹3 crore, with exchanges given the flexibility to prescribe higher thresholds. The timelines for submitting net-worth and auditor certificates are also proposed to be aligned with financial reporting cycles, easing compliance pressure.
A significant revamp has been proposed for liquidity enhancement schemes (LES) and market making. SEBI plans to subsume market making schemes into a single, principle-based LES framework applicable across segments. The proposal replaces multiple layers of approvals and monitoring with a single half-yearly board review and removes the requirement for exchanges to submit half-yearly effectiveness reports to SEBI.
To support newer exchanges or new segments, SEBI has proposed allowing incentives of up to 25 per cent of net worth for the first five years of operations in a segment, subject to safeguards against artificial volumes or market manipulation.
Other changes include tabulating rules on circuit breakers, price bands and pre-open auctions for better clarity; deleting obsolete provisions on negotiated deals and FPI exemptions; simplifying PAN and client code rules; and allowing more flexibility for genuine client code modifications without penalty.
SEBI has invited public comments on the proposals by January 30.
Published on January 9, 2026
