SEBI News Updates – February 2025

In February 2025, the Securities and Exchange Board of India (SEBI) introduced a series of regulatory changes designed to enhance market transparency, protect investor interests, and modernize various aspects of our securities market.

Below is a detailed overview of the key SEBI updates for the month of February 2025. Each update is presented with its full official title, the notification date, and a detailed explanation of what changes have been proposed and their implications for market participants and investors.

1.    CONSULTATION PAPER UNDER SEBI (ICDR) REGULATIONS, 2018

Notification Date: February 21, 2025

What Are the Changes:

·       Enhanced Financial Disclosure Norms:

o   What It Means: Issuers will now need to provide more detailed information in their public issue documents. This includes deeper insights into financial metrics, risk factors, and future projections.

o   Implication: Investors will have a clearer picture of the company’s financial health and risks, which is expected to improve decision-making during public offerings.

·       Improved Risk Management:

o   What It Means: The revised guidelines require more stringent risk assessment and mitigation practices during the issuance process.

o   Implication: Enhanced protocols will help in early detection and management of potential risks, thereby safeguarding investor interests.

·       Investor Safeguards:

o   What It Means: Additional protective measures are being introduced, such as more rigorous checks on disclosure and accountability of lead managers and underwriters.

o   Implication: This step is designed to create a safer investment environment by minimizing potential misrepresentations.

·       Stakeholder Engagement :

o   What It Means: The consultation process invites feedback from market players and stakeholders, integrating industry best practices into the regulatory framework.

o   Implication: A collaborative approach helps ensure the regulations are practical and reflective of current market realities.

Impact on Angel Fund Scaling and Start-Up Financing:

o   What it means: By expanding the investor base, Angel Funds can raise more capital and deploy larger investments into startups.

o   Implications: Potential boost to start-up funding, fostering innovation and economic growth while maintaining regulatory safeguards.

2.    INVESTOR CHARTER FOR STOCK BROKERS

Notification Date: February 4, 2025

What Are the Changes:

·       Clear Role Definition:

o   What It Means: The charter spells out in precise terms the duties and responsibilities of stock brokers towards their clients.

o   Implication: With clear guidelines, brokers are held to higher standards, reducing ambiguities in client relationships.

·       Robust Code of Conduct:

o   What It Means: Ethical practices and conflict-of-interest norms have been strengthened.

o   Implication: This change ensures that brokers adhere to fair practices and that investor interests remain a priority.

·       Transparency Measures:

o   What It Means: Brokers are now required to provide more transparent information regarding their operations and any fees charged.

o   Implication: Increased transparency builds investor trust and can lead to more informed investment choices.

·       Grievance Redressal Mechanism:

o   What It Means: A structured process has been put in place for addressing and resolving investor complaints.

o   Implication: Faster and more effective redressal of grievances helps in building confidence in the market.

3.    CERTIFICATION OF ASSOCIATED PERSONS IN THE SECURITIES MARKETS REGULATIONS, 2007

Notification Date: February 14, 2025.

What Are the Changes:

·       Updated Qualification Criteria:

o   What It Means: The eligibility requirements for individuals working in the securities market have been revised to reflect current industry standards.

o   Implication: Ensuring that all associated persons possess upto-date knowledge and skills, which is crucial for maintaining market integrity.

·       Mandatory Periodic Training:

o   What It Means: Regular training sessions and re-certification processes will be instituted.

o   Implication: This fosters continuous professional development and helps in keeping pace with evolving market practices.

·       Stricter Ethical Compliance:

o   What It Means: Enhanced guidelines for ethical behavior and professional conduct are being introduced.

o   Implication: This strengthens accountability and builds a more trustworthy market environment.

·       Enhanced Monitoring:

o   What It Means: Increased oversight mechanisms to ensure adherence to the updated certification norms.

o   Implication: Regular checks will help in maintaining high standards and identifying any areas for improvement early on.

·       Examinations Required:

o   What it Means: Individuals must pass the ‘NISM-Series-X-A: Investment Adviser (Level 1)’ and ‘NISM-Series-X-B: Investment Adviser (Level 2)’ exams.

o   Implication: Investment advisers must clear these exams to qualify for providing investment advice, ensuring professional expertise.

·       Rescission of Previous Notifications:

o   What it Means: SEBI has rescinded Notification Nos. LADNRO/GN/13/2013-14/6109 and LAD-NRO/GN/2013-14/42/118.

o   Implication: The previous certification framework is replaced by the updated requirements, making compliance with the new guidelines necessary.

4.    PROPOSED AMENDMENTS TO MASTER CIRCULARS FOR REITS AND INVITS

Notification Date: February 20, 2025

What Are the Changes:

·       Streamlined Compliance Process:

o   What It Means: The amendments aim to simplify the regulatory requirements for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs).

o   Implication: This reduction in administrative burdens will make it easier for fund managers to comply while still maintaining regulatory oversight.

·       Updated Valuation Standards:

o   What It Means: The guidelines for asset valuation have been revised to ensure more accurate and transparent reporting.

o   Implication: Investors can expect a more consistent and reliable valuation of assets, leading to greater market confidence.

·       Clarification of Operational Requirements:

o   What It Means: There is now a more detailed explanation of the eligibility criteria and operational processes for managing these trusts.

o   Implication: This helps in preventing ambiguities and ensures that all participants follow a standardized process.

·       Enhanced Investor Protection:

o   What It Means: Additional measures have been included to ensure fair treatment and protection of investor interests.

o   Implication: By building in these safeguards, SEBI is working to reduce the risk associated with investments in REITs and INVITs.

·       Enhanced Market Participation and Transparency:

o   What It Means: SEBI has proposed to establish clear guidelines for follow-on offers by publicly offered IINVITs and REITs, to enhance market participation and transparency.

o   Implications: This initiative underscores SEBI’s ongoing efforts to refine the regulatory framework for REITs and INVITs, promoting a greater efficiency and investor confidence in the sector.

5.    SEBI MUTUAL FUNDS AMENDMENT REGULATIONS, 2025

Notification Date: February 14, 2025

What Are the Changes:

·       Fee Structure Transparency:

o   What It Means: Mutual funds will now be required to provide detailed disclosures of all fees, including management fees and expense ratios.

o   Implication: Investors will have a clearer understanding of the costs involved, which can aid in making more cost-effective investment decisions.

·       Strengthened Governance Measures:

o   What It Means: Enhanced internal control systems and governance protocols are being implemented to oversee fund management activities.

o   Implication: Better governance reduces the likelihood of mismanagement and fraud, benefiting the overall health of the market.

·       Improved Risk Disclosure:

o   What It Means: The risk factors associated with mutual fund investments will be communicated in a more comprehensive and accessible manner.

o   Implication: Investors are better informed about potential risks, allowing them to manage their portfolios more prudently.

·       Operational Streamlining:

o   What It Means: Simplified procedures for compliance and administration of mutual funds are being introduced.

o   Implication: This can lead to more efficient operations and lower operational costs over time.

·       Mandatory Employee Investment in Mutual Funds (Regulation 25(16)(B)):

o   What It Means: AMCs must invest a portion of their employees' remuneration in mutual fund schemes, based on their role/designation.

o   Implication: Aligns employee interests with investors, fostering accountability and investor-centric decision-making.

·       Mandatory Stress Testing for Certain Schemes (Regulation 25(30)):

o   What It Means: AMCs must conduct and disclose stress testing results for specified schemes in a SEBI-prescribed format.

o   Implication: Enhances risk management and transparency, ensuring investor protection

6.    SEBI PROCEDURE FOR MAKING, AMENDING, AND REVIEWING OF REGULATIONS, 2025

Notification Date: February 13, 2025

What Are the Changes:

·       Agile Regulatory Framework:

o   What It Means: A new procedural framework that allows for a faster and more responsive regulatory changes.

o   Implication: This flexibility enables SEBI to quickly adapt to market innovations and emerging risks.

·       Increased Transparency:

o   What It Means: Clearer timelines and guidelines for the process of drafting, amending, and reviewing regulations.

o   Implication: Stakeholders can better track and understand regulatory developments, which promotes trust and engagement.

·       Structured Consultation Mechanisms:

o   What It Means: The new framework includes formal channels for obtaining public and industry feedback during the regulatory process.

o   Implication: This ensures that the voice of the market is considered, leading to more balanced and effective regulations.

·       Enhanced Oversight Procedures:

o   What It Means: Regular review cycles and monitoring measures are now in place to continually assess the effectiveness of regulations.

o   Implication: This dynamic approach helps in fine-tuning regulations in response to real-world challenges.

·       Set Framework for Amendment and Review of Regulations:

o   What It Means: Any amendments to the existing SEBI regulations must follow the same process as when the regulations were first framed. However, there are specific conditions set in Regulation 6 and Regulation 9 that must be adhered to.

o   Implications: SEBI can regularly update regulations to reflect changes in the market and legal environment, ensuring they remain relevant and effective. The regular review can lead to simplification of regulations, making it easier for businesses to comply and operate in the market. The amendment process must be rigorous and transparent, adhering to established procedures. This will ensure that a sense of legal certainty for stakeholders maintained.

Non-applicability of certain provisions:

What It means:

·       Internal Organizational Matters: SEBI regulations do not apply to internal matters within SEBI itself. This means regulations are focused on external market participants and do not govern SEBI’s internal structure or operations.

·       Procedural Regulations: If regulations are procedural in nature, meaning they are about how things should be done without changing substantive policy, they are not subject to the same rules as substantive regulations.

·       Amendments to Regulations: Amendments to existing regulations are not themselves subject to the same rules as the regulations themselves. This may allow for a streamlined process for changes that don't require full public scrutiny.

·       Proposals with Public Comments Already Sought or Received: If public comments have already been solicited for a proposal, there is no need to seek them again. This can speed up the process when there has already been enough public input.

·       Implications: SEBI’s internal workings are separate from its regulatory mandate, allowing SEBI to manage its operations without external interference or the need for public consultations on internal matters. Non-substantive or procedural amendments may not require full public consultation, which can expedite regulatory updates that don’t significantly affect stakeholders.

7.    CONSULTATION PAPER ON TECHNOLOGY-BASED MEASURES TO SECURE TRADING ENVIRONMENT AND TO PREVENT UNAUTHORISED TRANSACTIONS IN TRADING, DEMAT ACCOUNT OF INVESTORS

Notification Date: February 18, 2025

What Are the Changes:

·       Advanced Cybersecurity Measures:

o   What It Means: Proposals include strengthening the authentication by way of SIM binding mechanism i.e. One UCCOne Device-One SIMsimilar to that of UPI payment applications where the UPI application recognize SIM along with mobile device & bank account details for carrying out UPI transactions. Similarly, the log-in into the trading account can take place only when the trading application recognise the UCC along with SIM and mobile device.

o   Implication: Improved cybersecurity protocols will reduce the risk of breaches and unauthorized transactions, protecting both investors and market integrity.

·       Real-Time Surveillance:

o   What It Means: Implementation of systems capable of monitoring transactions in real time to detect irregular activities instantly.

o   Implication: Faster identification of suspicious activities helps in mitigating risks before they escalate.

·       Enhanced Data Protection:

o   What It Means: New guidelines to secure investor data, with an emphasis on preventing cyber theft and fraud.

o   Implication: Investors gain additional layers of protection, reinforcing trust in digital trading systems.

·       Industry Collaboration:

o   What It Means: Encouraging partnerships with technology providers to adopt and integrate the latest security innovations.

o   Implication: Collaborative efforts can accelerate the deployment of robust security measures across the trading ecosystem.

8.    SECURITIES CONTRACTS REGULATION (STOCK EXCHANGES AND CLEARING CORPORATIONS) AMENDMENT REGULATIONS, 2025

Notification Date: February 06, 2025

What Are the Changes:

·       Enhanced Operational Standards:

o   What It Means: Revised protocols for reporting and operational procedures have been introduced for stock exchanges and clearing corporations. A new regulation is introduced to govern AI/ML usage by stock exchanges and clearing corporations.

o   Implication: This is aimed at ensuring smoother trading operations and reducing systemic risks.

·       Improved Risk Management:

o   What It Means: The amendments focus on strengthening risk control mechanisms to better manage market volatility and operational risks.

o   Implication: Strengthened risk measures help protect the financial system from potential shocks.

·       Strengthened Settlement Processes:

o   What It Means: Adjustments to the procedures for order matching and settlements to make transactions faster and more efficient.

o   Implication: A more efficient settlement process benefits both brokers and investors by reducing delays.

·       Alignment with Global Standards:

o   What It Means: Updates are designed to bring domestic regulations closer to international best practices.

o   Implication: This alignment improves the overall credibility and competitiveness of the Indian financial markets.

·       Sole ResponsibilIty of Exchanges & Clearing Corporations:

o   What It Means: Exchanges and clearing corporations are solely accountable for AI/ML tools, whether developed in-house or outsourced.

o   Implications: They cannot shift blame to third-party vendors and must ensure compliance and risk management.

·       Data Privacy, Security, and Integrity

o   What It Means: Entities must safeguard investor and stakeholder data when using AI/ML tools.

o   Implications: Non-compliance could lead to regulatory actions, penalties, or loss of investor trust.

9.    FACILITATION TO SEBI REGISTERED STOCKBROKERS TO ACCESS NDSOM FOR TRADING IN GOVERNMENT SECURITIES (SBUS)

Notification Date: February 11, 2025

What Are the Changes:

·       Expanded Access to NDS-OM:

o   What It Means: Registered stockbrokers will now have broader access to the Negotiated Dealing System – Order Matching (NDS-OM) for trading government securities.

o   Implication: Enhanced system access is expected to improve liquidity and offer better execution of trades.

·       Simplified Application Procedures:

o   What It Means: The process for registration and access has been streamlined to reduce bureaucratic delays.

o   Implication: This enables brokers to quickly adapt to new trading opportunities in government securities.

·       Improved Transaction Efficiency:

o   What It Means: Integration of updated technology within NDSOM to ensure faster data processing and transaction matching.

o   Implication: Investors benefit from reduced trade execution times and improved reliability.

·       Enhanced Security Measures:

o   What It Means: Strengthened cybersecurity protocols within the NDS-OM platform to safeguard trading operations.

o   Implication: Ensures that all transactions are secure and less vulnerable to external threats.

·       RBI’s Permission for Non-Bank Brokers:

o   What It Means: RBI’s notification permits SEBI-registered nonbank brokers to access NDS-OM under the Master Direction on Access Criteria for NDS-OM.

o   Implications: Expands market participation, increasing liquidity in the G-Secs market.

·       Separate Business Unit (SBU) Requirement:

o   What It Means: Stockbrokers must operate NDS-OM activities through an SBU within their entity.

o   Implication: Ensures a distinct separation between stockbroking and NDS-OM activities, avoiding regulatory conflicts.

·       Segregation of Activities:

o   What it Means: NDS-OM operations must be isolated from stockbroking activities, maintaining an arms-length relationship.

o   Implication: Prevents risk spillover and maintains regulatory clarity between market segments.

·       Separate Account Maintenance and Net Worth Computations:

o   What it Means: The SBU must have a separate account from the stockbroker’s primary business. The net worth of the SBU must be distinct from the stockbroker’s net worth.

o   Implication: Enhances financial transparency and prevents commingling of funds. Ensures stockbrokers meet capital requirements without relying on SBU’s funds.

·       Investor Grievance Redressal Exclusion:

o   What it Means: NDS-OM investors cannot access SEBI’s SCORES platform or stock exchange IPF for dispute resolution.

o   Implication: Investors must rely on the grievance redressal mechanisms of the relevant regulatory authority overseeing the SBU.

10.   SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND PARTICIPANTS) AMENDED REGULATIONS, 2025

Notification Date: (Latest) February 6, 2025

What Are the Changes:

·       Updated Operational Guidelines:

o   What It Means: The regulations governing the functioning of depositories and their participants have been revised to include more stringent operational procedures. Depositories must pay a 15% per annum interest on any unpaid, delayed, or short-paid fees owed to SEBI.

o   Implication: This helps in ensuring a smoother and more efficient settlement process in the securities market.

·       Enhanced Data Reporting Protocols:

o   What It Means: New requirements for timely and detailed reporting of transactions and holdings have been introduced.

o   Implication: Improved data accuracy and transparency benefit all market participants.

·       Stricter Compliance Measures:

o   What It Means: The amendments call for more robust compliance checks and regular audits. Depositories using AI/ML tools, whether developed internally or sourced externally, are fully responsible for their operations.

o   Implication: Enhanced oversight minimizes the risk of operational failures and fraud.

·       Improved Transparency:

o   What It Means: Clearer disclosure requirements are set to ensure that all transactions and operations are more transparent.

o   Implication: This fosters greater trust among investors and market participants.

11.   ADVANCE FEE TO BE CHARGED BY INVESTMENT ADVISERS (IAS) AND RESEARCH ANALYSTS (RAS)

Notification Date: February 12, 2025

What Are the Changes:

·       Standardized Fee Framework:

o   What It Means: A uniform framework for charging advance fees has been established, specifying the methodology and limits for such charges. IAs can charge advance fees for up to two quarters (since April 2021). RAs, after a December 2024 amendment, can charge advance fees for only one quarter.

o   Implication: This helps in preventing arbitrary fee structures and ensures consistency across the industry. Limits RAs' ability to offer long-term recommendations and increases administrative costs for both clients and RAs.

·       Clear Disclosure of Fees:

o   What It Means: Investment advisers and research analysts must now clearly disclose their fee structures to clients before engagement.

o   Implication: Enhanced clarity minimizes misunderstandings and builds client trust.

·       Periodic Fee Reviews

o   What It Means: There will be a systematic review of fee practices to ensure they remain fair and competitive. RAs argue that short advance fee periods encourage short-term recommendations. SEBI received requests to extend the advance fee period for better financial planning.

o   Implication: Regular reviews help adjust fees in line with market trends, protecting investor interests. Investors may receive more long-term, strategic recommendations. Operational ease for RAs in managing client fees.

·       Proposal to Extend Advance Fee Period:

o   What It Means: SEBI proposes allowing IAs and RAs to charge advance fees for up to one year. This will apply only to individual and HUF clients; institutional clients will negotiate separately.

o   Implications: Provides flexibility for RAs and IAs in structuring client agreements. Investors may face challenges in case of early termination.

·       Investor Protect ion Measures:

o   What It Means: Safeguards have been introduced to prevent any potential conflict of interest arising from fee-related practices.

o   Implication: These measures ensure that advisers maintain a fiduciary duty to their clients. Investors will have an exit mechanism with minimal financial loss. This ensures investor protection while allowing fee structure flexibility.

12.   SECURITIES AND EXCHANGE BOARD OF INDIA (INTERMEDIARIES) AMENDMENT REGULATIONS, 2025

Notification Date: February 06, 2025

What Are the Changes:

·       Revised Eligibility and Operational Criteria:

o   What It Means: The amendments redefine the qualification benchmarks and operational standards for market intermediaries.

o   Implication: This ensures that all intermediaries meet a higher standard of professionalism and compliance.

·       Strengthened Internal Controls:

o   What It Means: New controls and monitoring mechanisms are being put in place to better track the activities of intermediaries.

o   Implication: Enhanced oversight helps reduce risks associated with operational failures or misconduct.

·       Enhanced Ethical Standards:

o   What It Means: Clear ethical guidelines have been reinforced to guide intermediary conduct in all market transactions.

o   Implication: This promotes fair practices and builds greater investor confidence.

·       Improved Dispute Resolution:

o   What It Means: More structured procedures for addressing conflicts and resolving disputes between intermediaries and investors are introduced.

o   Implication: Faster resolution of issues helps maintain market stability and investor trust.

·       Responsibility for Investor Data Protection:

o   What It Means: Entities must ensure privacy, security, and integrity of investor data when using AI/ML .

o   Implication: Firms must implement strong data protection measures to prevent breaches or misuse.

·       Scope of Regulated Persons:

o   What It Means: The regulation applies to all entities covered under Explanation 1 to Regulation 16A of SEBI (Intermediaries) Regulations, 2008.

o   Implication: A wide range of market participants, including brokers, advisors, and fund managers, must comply.

13.   INTRODUCTION OF FORMAT FOR NOC CONSENT LETTER TO BE SUBMITTED BY EXISTING CHARGE HOLDERS TO ISSUER

Notification Date: February 12, 2025.

What Are the Changes:

·       Standardized Template:

o   What It Means: A uniform format for No Objection Certificate (NOC) consent letters is now mandatory, replacing disparate practices across issuers.

o   Implication: This standardization is expected to simplify the process and reduce administrative errors.

·       Detailed Guidelines:

o   What It Means: The new format comes with comprehensive instructions on the necessary documentation and submission protocols.

o   Implication: Ensures that all parties clearly understand the process, leading to a smoother approval workflow

·       Improved Efficiency:

o   What It Means: The standardized process will expedite the review and approval of NOC consent letters.

o   Implication: Faster processing times benefit both issuers and charge holders by reducing delays.

·       Greater Consistency:

o   What It Means: Consistent use of the template across the board promotes uniformity in documentation.

o   Implication: This change minimizes miscommunication and ensures that all required information is captured accurately.

·       Due Diligence for Secured Debt Securities:

o   What It Means: DTs must conduct due diligence before creating security over assets, including obtaining consents from existing charge holders.

o   Implications: Ensures transparency and safeguards investor interests by verifying security availability.

·       NOC/ Consent f rom Existing Charge Holders:

o   What It Means: Issuers must obtain a NOC/ Consent from existing charge holders before creating further charges on encumbered assets.

o   Implications: Prevents disputes by ensuring existing charge holders’ rights are acknowledged and protected.

14.   CONSULTATION PAPER ON REVIEW OF REGULATION 17A OF SEBI (AIF) REGULATIONS, 2012

Notification Date: February 07, 2025

What Are the Changes:

·       Stronger Investor Protection Measures:

o   What It Means: The review aims to introduce tighter controls and enhanced disclosure requirements for Alternative Investment Funds (AIFs).

o   Implication: Investors will benefit from improved transparency regarding fund performance and risk exposures.

·       Revised Disclosure Norms:

o   What It Means: AIFs are expected to provide more comprehensive data on their investment strategies, asset allocations, and associated risks.

o   Implication: This helps investors better assess the suitability of these funds relative to their risk profiles.

·       Operational Improvements:

o   What It Means: The consultation proposes operational changes to streamline fund management practices, reflecting the current market dynamics.

o   Implication: More efficient operations can lead to better fund performance and reduced administrative burdens.

·       Feedback-Driven Revisions:

o   What It Means: SEBI is actively seeking inputs from industry stakeholders to fine-tune the proposed revisions.

o   Implication: A collaborative approach ensures that the final regulations are both practical and effective.

·       Impact of Regulation 62(A) of LODR Regulations:

o   What It Means: From January 1, 2024, all newly issued NCDs must be listed.

o   Implication: This limits the ability of Category II AIFs to invest in unlisted debt securities, reducing their investment options.

·       Impact of Regulation 62(A) of LODR Regulations:

o   What It Means: From January 1, 2024, all newly issued NCDs must be listed.

o   Implication: This limits the ability of Category II AIFs to invest in unlisted debt securities, reducing their investment options.

15.   CONSULTATION PAPER ON ASPECTS RELATING TO SECRETARIAL COMPLIANCE REPORT, APPOINTMENT OF AUDITORS AND RELATED PARTY TRANSACTIONS OF A LISTED ENTITY

Notification Date: February 07, 2025

What Are the Changes:

·       Detailed Reporting Guidelines:

o   What It Means: SEBI proposes a revised Annual Secretarial Compliance Report (ASCR) format with explicit confirmation from Practicing Company Secretaries (PCS) on compliance with securities laws.

o   Implication: Clearer reporting standards will enhance the quality and consistency of compliance disclosures.

·       Revised Auditor Appointment Criteria:

o   What It Means: Changes have been proposed to the parameters for appointing statutory auditors, ensuring they have the requisite expertise and independence. SEBI plans to introduce such qualification and experience criteria, aligning with Rule 3(1) of the Companies (Audit and Auditors) Rules, 2014.

o   Implication: This strengthens the oversight of financial reporting and bolsters investor confidence in audited statements.

·       Enhanced Related Party Transaction Oversight:

o   What It Means: The guidelines propose stricter controls and disclosure requirements for transactions involving related parties.

o   Implication: Improved transparency in these transactions helps in minimizing conflicts of interest and potential financial misstatements.

·       Focus on Corporate Governance:

o   What It Means: Broader governance reforms are being recommended to ensure that listed entities adhere to high standards of accountability and transparency.

o   Implication: Enhanced corporate governance practices contribute to overall market stability and investor protection.

·       Enhancing Disclosures for Audi tor Appointments:

o   What it Means: Standardized disclosure format for audit committee, board, and shareholders on auditor credentials, prior affiliations, regulatory actions, and fees.

o   Implication: Improves transparency in auditor appointments and strengthens investor confidence.

·       Amendments to Related Party Transactions (RPTs):

o   What It Means: Introduces monetary thresholds (INR 1,000 crores for main-board and INR 50 crores for SME-listed subsidiaries) alongside percentage-based thresholds for RPT approvals.

o   Implication: Ensures consistent and risk-based RPT approvals, aligning with existing LODR thresholds. General Corporate Advisory and Regulatory