On May 1, 2025, IND SEBI published the Securities contracts (regulation) (stock exchanges and clearing corporations) (third amendment) regulations 2025.
They make further amendments to the 2018 principal regulations on the same subject.
Non-independent director on governing board of recognized stock exchange or recognized clearing corporation may be appointed in another recognized stock exchange or a recognized clearing corporation or a depository, with prior approval.
However, this is only after a cooling-off period as may be specified by the governing board of such recognized stock exchange or recognized clearing corporation.
Upon the expiry of the term at the recognized stock exchange or recognized clearing corporation, a public interest director may be appointed for a further term of 3 years in another recognized stock exchange or a recognized clearing corporation or depository.
This is with prior approval of board, only after cooling-off period as may be specified by governing board of such recognized stock exchange or recognized clearing corporation.
The amendments are effective from Jul. 29, 2025, being 90 days after date gazetted.
Document dated May 1, 2025, received from IND SEBI May 5, summarized May 6.
On May 10, IND SEBI amended rules re stock exchanges and clearing.
IND SEBI issued Securities contracts (regulation) (stock exchanges and clearing corporations) (second amendment) regulations, 2024, which make amendments to regulation 11 of the 2018 principal regulations on the same subject.
Follows IND SEBI Oct. 2023 proposed simplification of numerous regs, see #186918.
Document dated May 10, 2024, received from IND SEBI May 14, summarized May 16.
Revision
Sub-regulation 2 is substituted to include provisions for recognized stock exchanges to pay a specified amount to SEBI within fifteen days from the end of each month based on their annual turnover, excluding turnover on agricultural commodity derivatives.
Flat regulatory fee of INR 1 lakh is also mandated on aggregate value of transactions.
Sub-reg. 3 is modified to replace the word quarter of a financial year with month.
Effectiveness
The regulations come into force upon publication in official gazette, i.e. May 10, 2024.
Jul. 2024 Third Amendment
On Jul. 29, 2024, IND SEBI published the Securities contracts (regulation) (stock exchanges and clearing corporations) (third amendment) regulations, 2024.
The third amendment regulations further amend the Securities contracts (regulation) (stock exchanges and clearing corporations) regulations, 2018, dated Oct. 3, 2018.
In reg 21, sub-reg (1) will be replaced with new sub-reg on disclosure of shareholding.
Exchanges to disclose shareholding patterns on their websites on a quarterly basis.
The regulations come into force upon publication in official gazette, on Jul. 29, 2024.
Document dated Jul. 29, 2024, received from IND SEBI Jul. 31, summarized Aug. 5.
Aug. 2024 Fourth Amendment
On Aug. 29, 2024, IND SEBI published the Securities contracts (regulation) (stock exchanges and clearing corporations) (fourth amendment) regulations, 2024.
Makes amendments to the Securities contracts (regulation) (stock exchanges and clearing corporations) Regulations, 2018which include insertion of a new chapter VIA on restrictions in dealing with unregulated entities inserted after Chapters VI and VII.
Document dated Aug. 29, 2024, received from IND SEBI Aug. 30, summarized Sep. 3.
In Oct. 2024, IND SEBI proposed rules for specified digital platform, see #230769.
In Oct. 2024, IND SEBI clarified rules for association of persons, see #230773.
In Dec. 2024, IND SEBI proposed clarification re prohibited activities, see #236213.
Feb. 2025 Additional Amendment
On Feb. 10, 2025, IND SEBI published Securities contracts (regulation) (stock exchanges and clearing corporations) (amendment) regs 2025, in force Feb. 10, 2025.
They make amendments to the 2018 principal regulations on the same subject.
Apply to recognized stock exchanges and clearing corporations using AI and machine learning tools; cover tools developed internally or procured from 3rd-party providers.
Requirements apply regardless of scale or scope of AI adoption; organizations solely responsible for privacy, security, integrity of investor/stakeholder data held in fiduciary capacity; must ensure responsibility for outputs and decisions from AI tool usage.
Organizations are additionally required to maintain compliance with all applicable laws.
Scope of AI tools includes applications, software programs, executable systems used for trading and settlement facilitation; covers internal systems for operational activities and compliance requirements and applies to public-facing products and services.
AI tools also encompass relevant tools used for management and business purposes.
May 2025 Third Amendment for 2025
On May 1, 2025, IND SEBI published the Securities contracts (regulation) (stock exchanges and clearing corporations) (third amendment) regulations 2025.
They make further amendments to the 2018 principal regulations on the same subject.
Non-independent director on governing board of recognized stock exchange or recognized clearing corporation may be appointed in another recognized stock exchange or a recognized clearing corporation or a depository, with prior approval.
However, this is only after a cooling-off period as may be specified by the governing board of such recognized stock exchange or recognized clearing corporation.
Upon the expiry of the term at the recognized stock exchange or recognized clearing corporation, a public interest director may be appointed for a further term of 3 years in another recognized stock exchange or a recognized clearing corporation or depository.
This is with prior approval of board, only after cooling-off period as may be specified by governing board of such recognized stock exchange or recognized clearing corporation.
The amendments are effective from Jul. 29, 2025, being 90 days after date gazetted.
Document dated May 1, 2025, received from IND SEBI May 5, summarized May 6.
Regulators
IND SEBI
Entity Types
B/D; Depo; Exch; Fiduciary
Reference
PR 5/1/2025; OG No. 334, Reg SEBI/LAD-NRO/GN/2025/24, 4/30/2025; OG SEBI/LAD-NRO/GN/2025/227, No. 93, 2/10/2024; OG SEBI/LAD-NRO/GN/2024/202, OG SEBI/LAD-NRO/GN/2018/41, 8/29/2024; OG SEBI/LAD-NRO/GN/2024/196, 7/29/2024; OG SEBI/LAD-NRO/GN/2024/174, 5/10/2024; SEBI/LAD-NRO/GN/2018/41, 10/3/2018; ESG; Fintech
