Regulatory Roundup

Capital Markets

Change: The Securities and Exchange Board of India (Sebi) has proposed to appoint two executive directors at stock exchanges, clearing corporations (CCs) and depositories to focus on regulatory compliance, risk management, investor grievances, and day-to-day operations.

Impact: Sebi wants to ensure they prioritise public interest, investor protection, and compliance rather than pure commercial gains.

Change: Sebi has opened a limited-time settlement scheme for brokers involved in the `5,600 crore National Spot Exchange (NSEL) crisis.

Impact: The NSEL Settlement Scheme 2025 will allow brokers against whom Sebi has already passed orders for trading or facilitating trades on the now-defunct exchange to settle the matter under the securities law.

Changes: Sebi has proposed a revised framework for IT capacity planning and real-time performance monitoring for commodity derivative exchanges and CCs.

Impact: The equity market guidelines, which cover detailed norms for system performance monitoring and stress testing for commodity derivative exchanges will now also apply to CCs operating in the commodity segment, thereby bringing them under its purview.

Income Tax

Change: The Income Tax Department has made Aadhaar-based OTP verification compulsory for any taxpayer seeking to modify their mobile number or email ID on the income tax e-filing portal.

Impact: With identity confirmation through Aadhaar-linked credentials becoming mandatory, the system will become more robust against fraud.

Banking

Change: The Reserve Bank of India (RBI) has issued draft guidelines to regulate the authorisation of digital banking channels to bring uniformity in the way banks and financial institutions run their digital platforms.

Impact: This aims to address security challenges by establishing procedures for banks and others to adhere to.

Change: The National Payments Corporation of India’s (NPCI) international wing, NPCI International Payments (NIPL), has on-boarded 13 more Indian banks onto the Singapore cross-border payment platform of UPI-PayNow.

Impact: Now, money sent from Singapore can be received by recipients in India in accounts maintained with any of the 19 participating banks through UPI-enabled mobile apps.

Change: NPCI has brought changes to how failed UPI payment disputes will be handled from July 15, 2025.

Impact: It will make chargeback process for the users smoother.

Insurance

Change: The Insurance Regulatory and Development Authority of India (Irdai) has set up panels to scrutinise violations of norms by insurers and intermediaries and tackle issues like mis-selling and data leakage.

Impact: The panel will look into regulatory violation, mis-selling and data leakage, thus bringing more transparency and benefitting policyholders in the long run.

Pension

Change: The government is considering a proposal by the Employees’ Provident Fund Organisation (EPFO) to allow EPF subscribers to withdraw their money partially or fully once every 10 years.

Impact: EPF members can now withdraw money according to their requirement without assigning reasons stipulated by the EPFO.

*List is not exhaustive | Compiled by Tarun Bhardwaj