Legal Framework SEBI Act, 1992
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Current affairsSEBI MF Lite Framework: 1 Finance Gets First In-Principle Approval for Passive-Only AMC; Closing Auction Rules Revised1 Finance received SEBI's first in-principle approval for an Asset Management Company (AMC) licence under the new MF Lite framework on October 19, 2026 — a lighter regulatory regime designed exclusively for passively managed mutual fund schemes (index funds and ETFs). Separately, SEBI revised the equity market Closing Auction Session (CAS) framework effective December 7, 2026, restructuring the 10-minute closing window while retaining the 30-minute VWAP method for derivatives settlement. Current affairsSEBI Notifies Common Advertisement Code 2026: Celebrity Endorsements Restricted to Brand-Level, Unified Rules for All IntermediariesSEBI on 8 October 2026 notified the SEBI (Intermediaries) (Second Amendment) Regulations, 2026 — a Common Advertisement Code for all regulated entities including mutual funds, brokers, investment advisers, and research analysts. Celebrity endorsements are now restricted to brand-level only; costs of celebrity ads cannot be charged to mutual fund schemes. The Code also mandates standardised risk disclosures and governs social media financial promotion. Current affairsSEBI Board Approves PMS Overhaul, New Settlement Regulations and Expanded FPI Access to Commodity DerivativesThe Securities and Exchange Board of India (SEBI) Board, at its meeting in September 2026, approved sweeping reforms to Portfolio Management Services (PMS) regulations, overhauled settlement proceedings, and expanded Foreign Portfolio Investor (FPI) access to commodity derivatives — marking one of the most wide-ranging regulatory updates by India's capital markets regulator in recent years. Current affairsRBI-SEBI Real World Asset (RWA) Tokenisation Pilot: India's First Tokenised Corporate Bond and the Blockchain Finance FrontierRBI Governor Sanjay Malhotra and SEBI Chairperson Tuhin Kanta Pandey jointly launched India's first tokenised corporate bond pilot at Global Fintech Fest 2026. REC Limited raised ₹500 crore via blockchain, settled in RBI's wholesale CBDC (e₹-W). By September 10, three issuers raised ₹1,025 crore under SEBI's Demat 2.0 framework — marking India's entry into blockchain-based capital markets. Current affairsSEBI-ESMA MoU on Central Counterparties (September 2026): India-EU Clearing House Cooperation and Its SignificanceSEBI and ESMA (European Securities and Markets Authority) signed an MoU on September 4, 2026, in Paris, covering cooperation and information exchange on Central Counterparties (CCPs). The agreement — signed by SEBI Chairman Tuhin Kanta Pandey and ESMA Chair Verena Ross — replaces the 2017 MoU and enables Indian CCPs to re-apply for ESMA recognition under EMIR, restoring EU clearing members' access to Indian clearing infrastructure. Current affairsSEBI IT Resilience Index for Market Infrastructure Institutions: Nine-Parameter Framework and Implications for India's Capital MarketsThe Securities and Exchange Board of India (SEBI) issued a circular on August 24, 2026 mandating a standardised IT Resilience Index (ITRI) for all Market Infrastructure Institutions — stock exchanges, depositories and clearing corporations — rated on nine parameters including availability and security, to be operationalised within six months.