The Securities and Exchange Board of India is carrying out a comprehensive review of the master circulars for stock exchanges and clearing corporations and for commodity derivatives, as part of a broader effort to simplify requirements and reduce compliance costs for market participants. The exercise is aimed at removing redundant or obsolete provisions, rationalizing periodic filings and clarifying delegated responsibilities. Four consultation papers on ease of doing business measures for stock exchanges have been issued, with consultations completed on administration, trading and exchange traded derivatives, while the paper on trading software and technology remains open. The main proposals would reorganize the framework by creating a single master circular for exchanges that combines stock exchange and commodity derivatives exchange provisions, a separate master circular for clearing corporations and a separate consolidated circular for market infrastructure institutions on common information technology requirements. SEBI also outlined measures to reduce the exchange master circular by about 50 percent, discontinue certain reports to SEBI by shifting them to market infrastructure institution committees or website disclosures, remove the need for SEBI registration of investment managers providing direct market access and introduce single window broker registration for smart order routing. Other proposed changes include a review of the system and network audit framework for market infrastructure institutions, the client code modification framework and responsibilities for monitoring position limits across products, along with liberalized norms for the Liquidity Enhancement Scheme, discontinuation of close to money norms for options in goods and merger of investor protection funds for equity and commodity segments. The master circular for exchanges is to be issued after SEBI reviews public comments on the consultation papers. The clearing corporations master circular will be issued after consultation. Comments on the fourth consultation paper on trading software and technology for exchanges are due by July 13, 2026.
Securities & Exchange Board of India2026-06-22
Securities and Exchange Board of India advances review of exchange rules with consolidation proposals and a 50 percent cut in master circular length
The Securities and Exchange Board of India is reviewing its master circulars for exchanges, clearing corporations and commodity derivatives to simplify rules and lower compliance burdens. Proposed changes include a single master circular for exchanges, a separate one for clearing corporations, fewer reports and registrations, and a roughly 50 percent reduction in the exchange circular's length. Comments on the consultation paper covering trading software and exchange technology are due by July 13, 2026.