Archive · 26 Oct 2025
SEBI Considers Standard Rules for Withholding Pay-Outs
SEBI is creating a standard set of rules to help stock exchanges deal with orders from law enforcement.
Currently, exchanges handle these situations differently.
The new rules will tell exchanges exactly what to do, like freezing accounts and withholding payments, when they get an order.
This will help make sure everyone is treated the same way and make it easier to deal with fast trading.
This new framework is to ensure consistency, especially in faster trading environments.
SEBI is developing a standard procedure for withholding pay-outs.
The SOP will provide uniform steps for stock exchanges to follow.
The framework will be applied across exchanges.
Current practice is on a case-by-case basis.
The move is expected to support faster settlement cycles.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Examining a standard operating procedure (SOP) for withholding securities or funds pay-outs after receiving directions from law enforcement or judicial authorities
- When
- Examination ongoing; published October 26, 2025
- Where
- India
- Why
- To create a market-wide framework for exchanges to act promptly and consistently when orders arrive.
- Focus
- Uniform SOP for withholding pay-outs after enforcement orders
- Affected entities
- Stock exchanges
- Current practice
- Case-by-case basis
- Trigger
- Directions from law enforcement or judicial authorities
- Actions
- Blocking pay-outs, stopping settlements, withholding securities