Business · Markets · 9 hrs ago
Sebi proposes automatic approval for some exchange activities
India’s market regulator Sebi has proposed an automatic approval route for some activities by stock exchanges and depositories.
These institutions help run the country’s securities markets, and they currently need Sebi’s prior approval for many activities involving funds.
The proposal would cover activities linked to their core functions, with two routes for specified cases.
Annual fund deployment would be capped at the lower of 5 per cent of an institution’s net worth or the regulatory minimum net worth requirement.
Its net worth after any deployment would also need to stay at least 1.5 times the required minimum.
Boards would still approve each activity, and institutions would need conflict-of-interest safeguards, procedures and half-yearly reports to Sebi.
Sebi says the change could reduce unnecessary compliance while keeping oversight in place.
The public can comment until November 12; the proposal is not yet a rule.
Sebi has proposed allowing stock exchanges and depositories to undertake some activities without seeking its prior approval.
The proposal covers activities related or incidental to their core functions and would apply subject to financial limits and governance safeguards.
It excludes recognised clearing corporations from the proposed automatic route.
Sebi says the change could reduce regulatory burden, including for small investments that support market operations.
The regulator is seeking public comments on the proposals until November 12.
- Who
- India’s Securities and Exchange Board of India (Sebi) proposed the changes for market infrastructure institutions, including stock exchanges and depositories.
- What
- It proposed an automatic approval route for certain activities and fund deployments related or incidental to core functions.
- When
- The proposal was reported on October 23, 2026. Public comments are due by November 12.
- Where
- India.
- Why
- Sebi says the current framework creates an additional compliance burden, including for small investments supporting market operations.
This story does not have two clearly opposing sides.
Sebi’s proposal to allow an automatic approval route was reported.
Deadline for public comments on the proposals.
- Automatic route
- Covers certain activities related or incidental to core functions
- Excluded institutions
- Recognised clearing corporations
- Fund deployment cap
- Lower of 5 per cent of an MII’s net worth or its regulatory minimum net worth requirement
- Net worth safeguard
- Must remain at least 1.5 times the regulatory minimum after deployment
- Public comments deadline
- November 12
What people are saying
The MIIs (excluding the recognized clearing corporations) may engage in activities whether involving deployment of funds or otherwise, without prior approval of Sebi (herein after referred to as the "automatic route"), in the following routes (A&B) and subject to the financial limits ... and the governance conditions