Archive · 10 Jan 2026
SEBI Proposes Trading Norms Overhaul
SEBI, the markets regulator in India, has proposed big changes to the rules for stock exchanges.
These changes aim to make things simpler and easier to follow.
They want to combine different rules into one set, making it easier for everyone to understand.
SEBI also suggested raising the minimum net worth for brokers offering margin trading to ₹5 crore.
They want to make it easier for new exchanges to start by offering incentives.
The regulator has asked for public comments on these proposals by January 30, 2026.
These changes are part of SEBI's plan to make doing business easier.
SEBI proposed a wide-ranging overhaul of trading-related rules for stock exchanges to simplify regulations and reduce compliance costs.
The regulator suggested consolidating and rationalizing provisions under Chapter 1 (Trading) of the master circular for stock exchanges and clearing corporations.
SEBI proposed raising the minimum net-worth requirement for brokers offering margin trading facility (MTF) to ₹5 crore from the current ₹3 crore.
A significant revamp has been proposed for liquidity enhancement schemes (LES) and market making, subsuming market making schemes into a single, principle-based LES framework.
SEBI has invited public comments on the proposals by January 30, 2026.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Proposed a wide-ranging overhaul of trading-related rules for stock exchanges
- When
- Proposal date: January 9, 2026; Comment deadline: January 30, 2026
- Where
- India
- Why
- To simplify regulations, remove duplication, and reduce compliance costs
- Regulator
- Securities and Exchange Board of India (SEBI)
- Proposal Date
- January 9, 2026
- Comment Deadline
- January 30, 2026
- Key Change
- Consolidation of trading-related rules for stock exchanges
- MTF Net-Worth Requirement
- ₹5 crore (previously ₹3 crore)
- LES Framework
- Single, principle-based framework for liquidity enhancement schemes
- Incentives for New Exchanges
- Up to 25% of net worth for the first five years
