Dematerializing investments: relaxed timelines for AIFs

From July 1, 2025, all investments made by AIFs, whether directly in the investee company or acquired from another entity, will be required to be held in dematerialized form. This includes any new investments made post this date, ensuring uniformity in the treatment of securities and streamlining the entire investment process. Investments made by AIFs prior to July 1, 2025, are generally exempt from the requirement to hold investments in dematerialized form.

Revised timelines for issuance of Consolidated Account Statement

According to the guidelines, CAS was to be generated on a monthly basis, and Asset Management Companies (AMCs) and Mutual Fund Registrar and Transfer Agents (MF-RTAs) were required to share common PAN data with depositories within three days of the month-end. Depositories, in turn, had ten days to consolidate the information and dispatch the CAS.

MITRA platform: A searchable database of mutual fund folios

MITRA is a service platform designed to provide a searchable database of inactive and unclaimed mutual fund folios across the industry. With this platform, investors can now easily trace investments they may have forgotten about or investments made on their behalf, helping reduce the number of unclaimed investments and bringing more transparency to the financial ecosystem.

New framework on Margin Obligations: A Step Toward Secure and Efficient Trading

In a bid to address operational inefficiencies and safeguard client securities, the Securities and Exchange Board of India (SEBI) has proposed a new set of guidelines regarding the pledge and re-pledge of securities in the depository system. This draft circular, which invites public comments, seeks to improve the mechanisms for margin obligations and enhance the security and ease of compliance for brokers and clients alike.

Industry standards Fora: New programme for implementing SEBI regulations

This initiative aims to streamline the implementation of SEBI’s regulatory directions across a range of entities, such as Market Infrastructure Institutions (MIIs), mutual funds, listed companies, intermediaries, and investment advisors. By providing a structured and standardized approach to compliance, this system is designed to simplify processes for industry participants and ensure that regulatory directions are followed effectively.

Nodal officer under UAPA: New appointment to regulate Gift IFSC entities

The February 2025 circular issued by IFSCA signals a shift in the leadership for overseeing the implementation of these critical regulations. Ankit Bhansali, General Manager at the Division of Anti-Money Laundering and Combating the Financing of Terrorism (AML & CFT), has been designated as the new Nodal Officer responsible for the execution of Section 51A of the UAPA and Section 12A of the WMD Act. This change is a modification of the earlier circular and communication, which may have previously indicated a different officer for this role.

New draft framework for appointment of auditors

SEBI has issued a Consultation Paper on aspects relating to Secretarial Compliance Report, Appointment of Auditors and Related Party Transactions of a Listed Entity. The comments or suggestions, along with rationale, may be submitted latest by February 28, 2025.