The Securities and Exchange Board of India (SEBI), on May 15, 2026, issued an updated Master Circular consolidating all applicable directions and frameworks relating to surveillance of the securities market. The circular has been updated to incorporate recent regulatory measures, including the framework for “Financial Disincentives for Surveillance Related Lapses” at Market Infrastructure Institutions, provisions permitting subscription to Non-Convertible Securities during trading window closure periods, and the extension of automated trading window closure requirements to immediate relatives of designated persons.
The updated Master Circular aims to provide stock exchanges, depositories, listed companies, intermediaries, and fiduciaries with a single consolidated reference for surveillance-related compliance obligations. SEBI clarified that earlier circulars listed in the appendix to the Master Circular stand rescinded to the extent they relate to surveillance of the securities market, while preserving the validity of actions, liabilities, proceedings, and applications initiated under the earlier circulars.
Further, SEBI stated that the Master Circular has been issued under Section 11(1) of the SEBI Act, 1992, with the objective of protecting investor interests, promoting orderly market development, and strengthening securities market regulation through enhanced surveillance and compliance mechanisms.
[Notification No. HO/43/15/12(3)2025-ISD-POD2/I/11734/2026]
