Regulatory News — SEBI & RBI
Track regulatory developments from SEBI, RBI, and government ministries that affect investors and markets. This section covers new circulars, policy changes, enforcement actions, and compliance requirements in plain language. Regulatory shifts — from margin rule changes to mutual fund expense ratio caps to new tax norms — can have a significant impact on how you trade and invest. Staying informed helps you adapt your strategy before changes take effect rather than reacting after the fact.
Vande Mataram Controversy Explained: Congress HQ Episode To Kangana-Sharmila Spat
The row, simmering since Parliament's winter session marking 150 years of the song, escalated after the Prevention of Insults to National Honour (Amendment) Act, 2026 was passed in the monsoon session.
F&O losses hit young traders hardest: 89% of investors under 30 lost money in FY26, most were from low-income groups
A recent Sebi study reveals that young traders, aged under 30, now represent 43% of individual traders but face high losses, with 89% incurring losses in FY26. Details here.
88% retail investors lost money in F&O trading in FY26: Sebi
In FY26, an alarming trend emerged in India's equity derivatives market, with nearly 90% of traders facing financial losses. Retail participation saw an unexpected decline of 18%, marking a significant shift not seen in a decade. Regulatory changes pushed numerous new traders out, leading to a notable concentration in short-dated options, where the highest risks burdened younger investors with smaller portfolios.
Sebi eases FPI onboarding with digital power of attorney
In a progressive move, the capital markets regulator has allowed foreign investors to adopt digital signatures, streamlining the onboarding experience. This change eliminates notarisation and apostillisation for power of attorney documents, thus accelerating onboarding times and enhancing regulatory processes. The goal is to invite more international capital into the Indian market landscape.
Retail F&O boom hits reverse gear as active trader base falls 18% in FY26: Sebi
SEBI found individual equity derivatives traders fell 18% to 88 lakh in FY26, the first annual decline in over a decade. Yet 87.7% still lost money, collectively losing Rs 91,685 crore, with options accounting for 92% of losses.
Rs 91,685 crore gone! 88% retail investors lost money in F&O trading in FY26 even after strict Sebi rules
Individual traders incurred substantial losses in India's equity derivatives market during FY26. Options trading accounted for the vast majority of these aggregate net losses. Active traders declined significantly, and new entrants also dropped considerably. Smaller investors with limited equity holdings experienced heavier losses than larger ones. The profit pool remained concentrated with institutional and professional traders.
F&O Woes: 90% Of Options Buyers Lose Money, But Losing Sellers Bleed 11 Times More, SEBI Study Shows
For options sellers who ended up making losses, the average loss stood at a staggering Rs 51.7 lakh, the SEBI study pointed out.
SEBI Study: Trader Exits Outpace Entries As Average Individual Loss Ticks Up To Rs 1.17 Lakh
Over the FY22-FY26 period, individual traders cumulatively lost Rs 3.85 lakh crore.
F&O Trap: 88.5% Traders Aged Under 30 Incur Losses, Most From Low-Income Group, SEBI Study Shows
Traders under 30 accounted for 43% of the trader base in FY26, while 73% have annual incomes below Rs 5 lakh.
Sebi eases FPI onboarding by allowing digitally signed Power of Attorney
Sebi has streamlined the onboarding process for foreign portfolio investors by permitting the use of digitally signed power of attorney documents. This change eliminates the requirement for notarization and consularization, enhancing the ease of doing business for overseas investors. As part of its commitment to digital transformation, Sebi aims to simplify investor processes, with these new regulations set to take effect on August 20, 2026.
SEBI Enables Faster Onboarding For FPIs, Permits Digitally Signed PoAs
The SEBI move allows FPIs to use digitally signed Powers of Attorney, removing physical notarisation requirements and helping speed up investor onboarding.
Why Zerodha’s Nithin Kamath wants fintech founders to rethink trading in the age of AI
Zerodha founder Nithin Kamath has urged fintech founders to rethink the future of trading and investing as AI, evolving market structures, regulations and emerging technologies reshape financial markets. He said brokers could eventually become little more than a “pipe” between customers and exchanges, while Rainmatter is again doubling down on fintech investments.
Can NRIs invest in India without flying back? Sebi’s KYC plan
Sebi’s proposed digital KYC overhaul could let NRIs, OCIs and eligible foreign nationals complete onboarding remotely, cutting paperwork, costs and delays while making it easier to invest in India.
Rs 10,978 Crore Real-Estate Transactions Under Tax Lens Across Five Border States | Profit Exclusive
Uttar Pradesh accounts for Rs 4,081 crore of property transactions flagged for compliance gaps, the highest among the five states.
Dhampur Sugar, Balrampur Chini to Dwarikesh Sugar: Sugar stocks rise up to 6%. Do you own any?
Sugar stocks gained momentum on August 20 after the government set stockholding limits amidst soaring prices. Major sugar firms reported increases in share values, and wholesale sugar prices significantly rose, forcing stricter inventory regulations during the upcoming festive season.
Sebi bets on trading reforms to reverse foreign capital flight
India's market regulator is poised to introduce substantial rule amendments aimed at boosting foreign investments. The planned reforms intend to lower collateral demands and stimulate interest in longer-term derivatives. With foreign investment in Indian stocks hitting a seventeen-year low, the Securities and Exchange Board of India will engage with industry players prior to rolling out these transformative measures, ultimately hoping to enhance India's position in global stock market rankings.
Dividend alert! Last day to buy LIC Housing Finance, Hitachi Energy among 38 stocks for dividend payouts. How many do you own?
Under Sebi's T+1 settlement cycle, investors need to purchase a company’s shares at least one trading day before the record date to ensure the shares are credited to their demat accounts in time, and they become eligible for the corporate action. Accordingly, today is the last opportunity for investors to buy the shares so that they are credited to their accounts by the record date (August 21), making them eligible for the dividend.
Dividend alert! Last day to buy LIC Housing Finance, Hitachi Energy among 38 stocks for dividends. How many do you own?
Under Sebi's T+1 settlement cycle, investors need to purchase a company’s shares at least one trading day before the record date to ensure the shares are credited to their demat accounts in time, and they become eligible for the corporate action. Accordingly, today is the last opportunity for investors to buy the shares so that they are credited to their accounts by the record date (August 21), making them eligible for the dividend.
Dividend alert! Last day to buy LIC Housing Fin, Hitachi Energy and 36 other stocks for dividend payouts. How many do you own?
Under Sebi's T+1 settlement cycle, investors need to purchase a company’s shares at least one trading day before the record date to ensure the shares are credited to their demat accounts in time, and they become eligible for the corporate action. Accordingly, today is the last opportunity for investors to buy the shares so that they are credited to their accounts by the record date (August 21), making them eligible for the dividend.
Mint Explainer | Why Sebi wants to revamp its settlement framework
Sebi has suggested changes to how settlement amounts are calculated and interest on disgorgement is charged. Why is Sebi proposing to change the framework?
Sebi asks brokers to accept orders in first five minutes of closing auction
The acceptance of after-market orders will help discover prices more accurately as liquidity improves.
Sebi to soon roll out AI rules with a ‘kill switch’ for stock market
Sebi will soon issue guidelines for responsible AI and machine learning use in India’s securities market, with mandatory safeguards including a “kill switch”, human oversight and data controls. Chairman Tuhin Kanta Pandey said the framework will balance innovation with investor protection as AI adoption expands across surveillance, risk assessment, fraud detection and investor servicing, while ensuring accountability among regulated entities.
Boost in the offing — Sebi may ease SME trading, market-making rules as costs, liquidity under scrutiny
Sebi is weighing a broader overhaul of the SME market as costly market-making, illiquid odd lots and rules linked to paid-up capital come under review.
Sebi may ease SME trading, market-making rules as costs and liquidity under scrutiny
Sebi is weighing a broader overhaul of the SME market as costly market-making, illiquid odd lots and rules linked to paid-up capital come under review.
SEBI To Allow After-Market Orders During 3:15-3:20 PM CAS Window: Sources
The move is aimed at improving participation and price discovery during the newly introduced closing auction mechanism. The rollout of the proposed change is being prepared and could begin around September 1, sources added.
Govt organises awareness session on EU CBAM for exporters
Indian exporters received an awareness session on the EU's Carbon Border Adjustment Mechanism regulations. This mechanism, effective January 1, imposes a carbon tax on specific imported goods. The session covered the framework, applicable products, and reporting requirements for exporters. Practical case studies for iron, steel, and aluminium sectors were also discussed. Exporters were urged to prepare for these emerging international sustainability requirements.
Sebi to soon float consultation paper on distribution framework for corporate bonds
Sebi is preparing to unveil a consultation paper focused on the distribution of corporate bonds. This initiative aims to refine the framework governing corporate bond sales and is evaluating additional distributor categories to broaden debt market participation. With the rise of online platforms, retail investors will gain improved access to privately placed bonds, while technological advancements are set to enhance transparency and efficiency in bond investments.
'This Is Huge': Nithin Kamath Lauds SEBI Move To Remove Key Hurdle For NRI Investors
Zerodha co-founder says proposed digital onboarding could cut NRI account-opening time to days
Sebi cautions investors against social media live trading tips and unregistered advisory services
Sebi has cautioned investors regarding social media accounts offering live trading strategies. These platforms often feature unregistered investment advisory services and real-time stock market tips. Individuals on social media portray themselves as market experts, providing detailed investment analysis. Live market data sharing is restricted by the regulator, except for specific purposes. Investor education and awareness can involve market data with a thirty-day lag.
Sebi clarifies rules on pledging securities for discretionary PMS clients to raise loans
In a recent update, the Securities and Exchange Board of India (Sebi) confirmed that clients engaged in discretionary portfolio management have the right to pledge their securities. They will still be considered beneficial owners and are permitted to utilize these assets as collateral. This flexibility allows clients to secure personal loans, alleviating prior worries regarding restrictions on borrowing by portfolio managers.
Sebi chair rules out CAS rollback; assures commitment to resolving ongoing issues
The Securities and Exchange Board of India is set to assess the implications of the newly implemented Closing Auction Session. Chairman Tuhin Kanta Pandey affirmed that this mechanism will remain in place and will undergo enhancements. Designed to ascertain closing prices for stocks in the futures and options market, the system has faced scrutiny from market participants who have reported losses.
Do Not Trust Live Trading Streams On Social Media: SEBI Warns Investors
Market regulator flags real-time stock tips on social media and urges investors to deal only with registered intermediaries
Following live trading strategies on social media? Sebi has a warning for you
Sebi warned investors against relying on live trading strategies and real-time stock tips shared on social media, saying such sessions may involve unregistered advisory services. The regulator urged investors to avoid such advice and deal only with Sebi-registered intermediaries.
Closing auction session is here to stay, says Sebi chief amid concerns over low liquidity
Sebi chairman Tuhin Kanta Pandey said the market regulator would examine and address constraints in the mechanism, but ruled out abandoning it because some market participants want to trade options differently.
Sebi chief Tuhin Kanta Pandey says CAS here to stay, will study concerns over rollout
Sebi Chairman Tuhin Kanta Pandey says the closing auction session (CAS) is here to stay, even as the regulator reviews concerns over its implementation. Launched on August 3, CAS has triggered sharp moves in the final minutes of trading and raised concerns over legacy systems, order placement and derivative positions. While Sebi has found no evidence of manipulation, Bernstein expects near-term pressure on index-options volumes.
CAS Is Here To Stay, Concerns Being Analysed: SEBI Chairman Tuhin Kanta Pandey
SEBI is reviewing trader feedback, expiry-date data and other concerns around the new closing auction mechanism before deciding if any changes are needed.
Anthropic CEO Dario Amodei Defends AI Regulation As Shield Against Corporate Monopolies
Amodei pointed to Anthropic's support for California's SB53 and SB1047, which distinguish regulatory requirements based on company size and AI capabilities.
Punjab & Sind Bank Looking Into QIP Route To Dilute Govt Stake To Meet SEBI's MPS Norms
Currently, the government holds a 93.85% stake in Delhi-headquartered Punjab & Sind Bank.
Income Tax Calendar 2026: 8 Key tax deadlines from August to December every taxpayer should know
Income Tax Calendar 2026 highlights key ITR filing, advance tax, tax audit, TDS and belated return deadlines from August to December. Know the important dates for AY 2026-27, understand revised return rules and plan tax compliance.
Investing in India from abroad? SEBI proposes digital KYC for NRIs, OCIs without physical presence in India
SEBI has proposed allowing NRIs, OCIs and eligible foreign nationals in FATF-compliant countries to complete digital KYC for Indian securities investments without travelling to India. The proposal also seeks to make KYC records portable.
SEC proposes easing 'pay-to-play' rules for investment advisers
The U.S. Securities and Exchange Commission is looking to relax rules that prevent investment advisers from managing public pension funds due to political contributions. These proposed amendments are intended to alleviate the compliance challenges faced by advisers and address longstanding issues raised by various political factions. Regulators are now inviting stakeholder feedback on these significant regulatory changes.
SEBI Mulls Digital Onboarding For Individual Foreign Investors To Boost Participation In Securities Market
The infrastructure used for the process will be required to verify face liveness and detect spoofing attempts, while ensuring that such checks do not exclude persons with special needs.
Sebi proposes major overhaul of settlement rules; fast-track route for cases up to ₹10 lakh
The proposals include removing an additional 20% settlement charge in certain cases involving multiple proceedings and introducing a fast-track mechanism for settlements of up to ₹10 lakh
SEBI Mulls Settlement Overhaul; Plans Fast-Track Route For Cases Up To Rs 10 Lakh
The existing summary settlement process for specified violations would also be retained as part of the proposed fast-track framework.
Sebi proposes to rationalise penalties for settling ongoing cases
India's market regulator has introduced an updated framework for addressing securities law violations, designed to streamline processes and decrease litigation. This proposed method may lead to reduced average settlement amounts for infractions. Individuals who faced prior rejections can submit new applications with modified terms. Stakeholders are encouraged to share their feedback on these proposals by September 4, 2026.
Sebi mulls digital onboarding for individual foreign investors to boost participation in securities mkt
Sebi has put forth a proposal for the digital onboarding of individual foreign investors, aimed at enhancing their access to markets. Intermediaries could utilize video verification for clients based abroad. Additionally, the framework suggests accepting KYC from other Sebi-registered entities. This initiative targets clients in FATF-compliant countries, with public feedback on the proposal requested by September 4.
Sebi broadens scope of online bond platforms, permits IFSCA-regulated products and tax-saving bonds
SEBI has expanded the scope for Online Bond Platform Providers (OBPPs), allowing them to offer IFSCA-regulated products and specific tax-saving bonds. Platforms must implement clear labelling, disclaimers, and updated compliance officer requirements to ensure investor transparency and regulatory adherence.
Sebi proposes easier digital KYC for Indians living abroad
Sebi’s proposed overhaul would let NRIs, OCIs and eligible foreign nationals complete securities-market KYC digitally from abroad, easing onboarding and document-verification hurdles.
Zee Entertainment Gets Interim Relief From SEBI Order; SAT Allows Preferential Warrant Issue
As part of the interim relief, SAT has allowed Zee Entertainment to proceed with its proposed preferential issue of warrants.
Still holding paper shares? Why claiming them can be difficult and how to convert them to demat
Investors in India who rediscover old physical share certificates, must convert them into demat holdings. SEBI's recent circular introduces a special window for eligible cases, along with simplified procedures for securities transmission. Details here.
Frequently Asked Questions
What does SEBI do and why does it matter for investors?
SEBI (Securities and Exchange Board of India) regulates the securities market — stock exchanges, brokers, mutual funds, and listed companies. Its rules directly affect how you trade and invest: margin requirements, mutual fund expense ratio caps, insider trading regulations, IPO norms, and disclosure standards. When SEBI tightens rules (like increasing margin requirements), it can reduce trading volumes and affect stock prices. When it introduces investor-friendly reforms, market participation tends to grow.
How do RBI policy changes impact my investments?
RBI controls monetary policy through the repo rate, which influences lending rates across the economy. A rate cut makes loans cheaper and typically boosts equities, real estate, and rate-sensitive sectors like banking and auto. Rate hikes raise borrowing costs, can slow economic growth, and often make fixed-income investments more attractive. RBI also regulates forex flows, banking norms, and liquidity conditions — all of which ripple through financial markets.
How can I stay compliant with new regulations?
For retail investors, the most important compliance areas are KYC updates (keeping your demat and bank details current), tax reporting of capital gains and dividends, and following SEBI's rules on insider trading if you have access to unpublished price-sensitive information through your work. Your broker and fund house handle most regulatory compliance on your behalf, but it is your responsibility to file accurate tax returns and report foreign assets if applicable.