SEBI Regulatory Update: January 2026
SEBI Regulatory Update: January 2026
This note summarizes key regulatory developments from the Securities and Exchange Board of India (SEBI) that impact market intermediaries and investors.
Derivatives Segment Changes
Enhanced Risk Management Framework
SEBI has introduced modifications to the risk management framework for derivatives trading:
Effective Date: February 1, 2026
Key changes include:
- Intraday Monitoring — Exchanges to monitor margins at 4 snapshots instead of 2
- Penalty Framework — Revised penalty structure for margin shortfalls
- Client Margin Reporting — Enhanced granularity in margin reporting to exchanges
Position Limits Revision
| Category | Old Limit | New Limit |
|---|---|---|
| Client Level (Index) | ₹500 Cr | ₹750 Cr |
| Client Level (Stock) | 5% of OI | 7.5% of OI |
| Trading Member | 15% of OI | 15% of OI |
Investor Protection Measures
Basic Services Demat Account (BSDA)
SEBI has expanded the eligibility criteria for BSDA:
- Previous limit: Holdings up to ₹2 lakh
- Revised limit: Holdings up to ₹10 lakh
This change aims to reduce compliance burden for small investors while maintaining adequate oversight.
Complaint Redressal
New timelines for complaint resolution have been mandated:
Market intermediaries shall resolve investor complaints within 21 working days, failing which automatic escalation to SEBI's SCORES platform shall be triggered.
Disclosure Requirements
Material Events
The definition of material events requiring immediate disclosure has been expanded to include:
- Cyber security incidents affecting operations
- Significant regulatory actions in any jurisdiction
- Material litigation developments
- Credit rating changes
Timeline Changes
| Disclosure Type | Previous | Revised |
|---|---|---|
| Material Events | 24 hours | 12 hours |
| Outcome of Board Meeting | 30 minutes | Immediate |
| Investor Complaints | Quarterly | Monthly |
Action Items for Intermediaries
Based on these developments, market intermediaries should:
- Review margin monitoring systems for enhanced intraday requirements
- Update disclosure policies to reflect revised timelines
- Communicate BSDA changes to retail clients
- Train compliance teams on new requirements
Resources
For detailed circulars, refer to:
- SEBI Circular No. SEBI/HO/MRD/2026/001
- NSE Circular No. NSE/INSP/2026/05
- BSE Notice No. 2026/01/15
This summary is for informational purposes. Please refer to official SEBI circulars for complete regulatory guidance.