FILE PHOTO: The logo of Securities and Exchange Board of India (SEBI) is seen on its headquarters in Mumbai, India, March 24, 2025. REUTERS/Hemanshi Kamani///File Photo
| Photo Credit:
HEMANSHI KAMANI
The Securities and Exchange Board of India (SEBI) board meeting scheduled for March 23 is expected to discuss the conflict-of-interest framework for senior officials again, along with likely proposals of netting of funds for foreign portfolio investor (FPI) transactions, revisions to ‘fit and proper person’ norms for intermediaries, and changes in trading at stock exchanges among others, according to people familiar with the matter.
The final agenda for the meeting has not yet been finalised. However, the board is expected to consider around 20 items, including several proposals that were not placed before at the previous board meeting held on December 17.
Key issue
One of the key issues expected to be discussed is the conflict-of-interest and disclosure framework for SEBI’s senior officials, based on the recommendations of a high-level committee report. The board had deferred a decision on the framework to be formalised in the December meeting, saying more deliberation was needed. “The conflict-of-interest report is expected to be discussed again, but it remains a discussion item for now,” said a person aware of the matter. “The board reaching a conclusion soon looks difficult.”
The board may consider a proposal to permit netting of funds for transactions undertaken by FPIs. The proposal seeks to allow offsetting of pay-in and pay-out obligations across trades, a move that could ease liquidity management and lower operational costs for overseas investors. “This is something FPIs have been seeking for some time, but the regulator will look closely at settlement and risk implications,” said another source.
The meeting may also discuss amendments to the ‘fit and proper person’ criteria for intermediaries. The proposal aims to tighten and clarify eligibility and integrity standards for intermediaries by refining disclosure and assessment parameters to remove ambiguity around suitability norms.
Another proposal that may be taken up is modification of master circulars for stock exchanges and clearing corporations and the commodity derivatives segment. The amendments aim to improve the ease-of-doing business and compliance at stock exchanges through simplifying regulatory requirements and removing redundant provisions and duplication. Proposals include merging, demerging and removing provisions.
An email sent to SEBI did not elicit a response until press time.
Regulatory tweaks
Other proposals that may come up for discussion include changes to base price and price band provisions for exchange traded funds to improve price discovery, relaxations in reporting requirements for stockbrokers as part of ease-of-doing-business measures, and extension of standing instructions for systematic withdrawal and transfer plans for mutual fund units held in dematerialised form.
The board may also take stock of proposals aimed at easing regulatory processes for REITs and InvITs, providing flexibility to alternative investment funds in winding up schemes or surrendering registration, reviewing stress-testing norms and settlement guarantee fund coverage in the commodity derivatives segment, and revisiting minimum investment thresholds and related norms for Social Impact Funds.
Published on February 22, 2026
