At its 23 March 2026 Board meeting yesterday, SEBI has recalibrated its regulatory approach – balancing enforcement with ease of doing business.
๐พ๐๐๐ ๐๐๐๐๐ ๐ ๐๐๐:
๐ ๐ข๐ญ & ๐๐ซ๐จ๐ฉ๐๐ซ ๐๐ง๐ญ๐๐ซ๐ฆ๐๐๐ข๐๐ซ๐ข๐๐ฌ: ๐๐จ๐ฏ๐ข๐ง๐ ๐๐๐ฒ๐จ๐ง๐ ๐ฆ๐๐๐ก๐๐ง๐ข๐๐๐ฅ ๐ญ๐ซ๐ข๐ ๐ ๐๐ซ๐ฌ
โข What should matter more for market access – allegations or convictions? SEBI Board resolves – No automatic disqualification on FIR/chargesheet
โข Focus shifts to principle-based evaluation
โข Disqualification anchored to convictions (economic offences / securities laws) โข Procedural safeguards strengthened
โข Comes in the backdrop of SEBIโs statement and reconsideration before the Hon’ble Bombay High Court in Writ Petition 1118/2024 & Ors.
๐๐จ๐ง๐๐ฅ๐ข๐๐ญ ๐จ๐ ๐๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐๐จ๐ซ ๐๐๐๐ ๐๐๐๐ข๐๐๐ซ๐ฌ: ๐๐จ๐ฏ๐๐ซ๐ง๐๐ง๐๐ ๐ ๐๐ญ๐ฌ ๐ฌ๐ก๐๐ซ๐ฉ๐๐ซ
โข Uniform investment/trading restrictions across SEBI leadership & employees
โข Mandatory action on existing holdings (liquidate / freeze / structured exit)
โข Chairman & WTMs classified as insiders, Department Of Economic Affairs, Government Of India to amend Rules
โข Rules extended to family members (prospective)
โข Creation of Office of Ethics & Compliance (OEC) to institutionalise oversight
โข Robust disclosure regime (initial + annual + event-based)
๐๐๐ซ๐ค๐๐ญ ๐๐๐๐จ๐ซ๐ฆ๐ฌ: ๐๐ซ๐๐๐ญ๐ข๐๐๐ฅ ๐๐๐ฌ๐ ๐จ๐ ๐๐จ๐ข๐ง๐ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ
โข AIFs: Flexible winding-up + โinoperative fundโ framework. SEBI finally addressed the โend-of-lifeโ problem in AIFs. AIFs no longer need to stay alive just to hold residual liabilities. SEBI introduces a pragmatic exit framework.
โข FPIs: Net settlement to reduce funding costs, cutting funding friction and FX inefficiencies
โข SIFs: Entry threshold reduced to โน1,000, opening the Social Stock Exchange to wider retail participation.
โข REITs/InvITs: Greater operational flexibility, addressing practical constraints and enabling more efficient capital deployment.
The real shift in SEBIโs latest reforms isnโt relaxation. Clearly, the Regulation is evolving from rule-based triggers to governance, transparency & proportionality.
SEBI Press Release is available at https://lnkd.in/dsgBjHvH
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