Sebi Board Meeting December 2025: The Board of Directors of market regulator Securities and Exchange Board of India (SEBI) will consider the report of the high-level committee constituted on issues related to conflict of interest of senior officials in an important meeting on Wednesday. This will be its fourth board meeting to be chaired by SEBI Chairman Tuhin Kant Pandey, in which the comprehensive reforms suggested to increase transparency and accountability will be discussed.

Important meeting of SEBI

The committee has made recommendations such as public disclosure of assets for top SEBI officials, establishment of a secure and anonymous whistleblower system, ban on expensive gifts, ban on appointment to any post for two years after retirement and creation of a new post of ‘Chief Ethics and Compliance Officer’ (CECO).

Apart from this, relaxation in KYC standards for NRIs, introduction of ‘closing auction session’ in the stock market and proposed changes in mutual fund and stock broker rules will also be considered in the meeting. SEBI has already issued a consultation paper on suggestions like clear definition of TER (Total Expense Ratio) in mutual fund rules, setting new limits on brokerage charges and keeping statutory taxes out of TER.

Along with this, the Board can also take a decision on the proposal to review the Stock Broker Regulations of 1992 and add a clear definition of algorithmic trading, which will further strengthen transparency and regulatory clarity in the market.

SEBI’s approval to NCDEX

National Commodity and Derivatives Exchange Limited (NCDEX) getting in-principle approval from market regulator SEBI to launch a mutual fund trading platform is considered an important strategic step for the exchange. NCDEX said on Monday that through this new facility, investors will be able to buy and sell units of mutual funds, due to which this exchange, which was limited to commodity based trading, will expand its scope.

According to the company, this platform will lay an initial and strong foundation towards the proposed equity trading segment in future, allowing NCDEX to emerge as a multi-asset exchange. The clearing and settlement responsibilities on this proposed mutual fund platform will be handled by National Commodity Clearing Limited (NCCL), which is a wholly owned subsidiary of NCDEX.

This is expected to ensure transparency, security and timely settlement in the transaction process. Market experts believe that this step of NCDEX will give an additional option to investors and with increased competition, mutual fund investment will be made more easy and accessible. Besides, this initiative is also being considered an important sign towards further broadening the role of exchanges in the Indian capital market.

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SEBI New Rule: Market regulator SEBI has made the rules related to block deals more stringent. Under this, the minimum order size for block deals has been increased from Rs 10 crore to Rs 25 crore. SEBI has allowed increasing the price range for non-derivative shares to 3 percent, while futures and options shares will be retained within the existing range of 1 percent. According to CNBC report, SEBI has adjusted the floor price for block deals, which can go up or down by 3 percent from the previous day’s closing.

Why was the size of the block deal increased?

This was announced through a circular on Wednesday. SEBI believes that as the market size increases, the minimum size of block deals should also increase. It also has many benefits such as it will prevent activities like speculation, increase transparency in the market, reduce the possibility of price manipulation through big deals, through this it will encourage big institutional investors or high priced trades, which will increase liquidity in the market. Let us tell you that lump sum buying and selling of shares in large quantities is called black deal.

Two windows for block deal

SEBI has kept two windows for block deals. The first window is from 8:45 am to 9:00 am, in which the floor price will be set at the previous day’s closing price. The second window is from 2:05 pm to 2:20 pm, in which the trading volume weighted average price (VWAP) will be used in the cash segment from 1:45 pm to 2:00 pm. Stock exchanges will share VWAP information between 2:00 pm and 2:05 pm.

Another big decision of SEBI

Keeping in mind the interest of investors, SEBI has also proposed to fix the limit on brokerage and transaction fees charged by mutual fund companies. According to the new rules of SEBI, mutual fund companies will no longer be able to charge brokerage or transaction fees from investors other than the total expense ratio.

Mutual fund companies object to the decision

This will reduce the burden on investors to a great extent. However, mutual fund companies are unhappy with this decision of SEBI considering the possibility of impact on profitability. Let us tell you that Total Expense Ratio is the amount which is charged by fund houses from investors for fund management, operational cost, research etc. SEBI has reduced its limit for cash market from 0.12 percent to 0.2 percent. Whereas for the futures section it has been reduced from 0.05 percent to 0.01 percent.

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The Indian capital market regulator SEBI has decided to increase the disclosure threshold for foreign portfolio investors (FPIs). Now more than Rs 50,000 crore equity assets under management (AUM) FPIS will have to be given additional information, whereas earlier this limit was Rs 25,000 crore. This decision was taken in a board meeting led by SEBI’s new chairman Tuhin Kant Pandey.

What changed now?

Old rule: FPIS with equity AUM over Rs 25,000 crore had to give details of all its investors/stakeholders.

New rule: Now FPIS with AUM over Rs 50,000 crore will have to do this disclosure.

SEBI said, “Compared to FY 2022-23, the trading volume of the cash equity market has doubled. Therefore, it has been decided to increase the threshold.”

Why was this rule brought?

In the circular of 24 August 2023, SEBI had given 2 conditions to FPIS- if more than 50 percent of a FPI equity AUM is in one corporate group, then it will have to make additional disclosures. Apart from this, FPIs with AUM over Rs 25,000 crore will have to give information about their final investors (Natural Persons). Indeed, its purpose was to ensure the following minimum public shareholding (MPS) and takeover rules, so that there is no market disturbances. Now SEBI made it clear that the investigation related to MPS and takeover rules will continue as before. Also, all FPIS will have to follow PMLA (Money Laundering Prevention Act).

What will this matter?

This will provide relief to big foreign investors FPIs. Actually, now small-matter FPIS will not need much disclosure, which will make their functioning easier. In addition, transparency in the market will increase, that is, the goal of SEBI is to ensure the privacy and rules of investors while keeping the market stable.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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