The Securities and Exchange Board of India (SEBI) on June 22, 2026, issued Comprehensive review of Master Circular for Stock Exchanges & Clearing Corporations and the Master Circular for Commodity Derivatives.
The Securities and Exchange Board of India (SEBI) is undertaking a comprehensive review of regulatory frameworks for stock exchanges, clearing corporations, and commodity derivatives markets as part of its vision of “optimal regulation” and Ease of Doing Business (EODB).
The review focuses on simplifying regulations by removing outdated and redundant provisions, rationalizing compliance requirements, delegating responsibilities, and incorporating stakeholder feedback. To achieve this, SEBI has issued four consultation papers covering administration, trading, derivatives, and trading technology, with the last one currently open for public comments.
Key reform proposals include:
Creation of a single Master Circular for Exchanges and a separate one for Clearing Corporations
Introduction of a consolidated IT circular for all MIIs
Significant reduction (around 50%) in regulatory content
Elimination or delegation of reporting requirements
Simplification measures such as single window broker registration, removal of certain norms (e.g., CTM), and merger of Investor Protection Funds
Overall, the initiative aims to establish a streamlined, efficient, and technology-driven regulatory framework, reducing compliance burden while maintaining market integrity. Final circulars will be issued after considering public feedback, with comments on the latest consultation paper invited until July 13, 2026.
[PR No. 35/2026]
