Recent Current Affairs related to SEBI

SEBI has issued a circular titled “Introduction of Credit Risk-o-Meter as an Additional Disclosure Mechanism for Debt Securities”, mandating a colour-coded Credit Risk-o-Meter to help investors assess the credit risk of debt securities.

The Credit Risk-o-Meter must be displayed across various platforms, including offer documents, abridged prospectuses, private placement memoranda, issuer advertisements, and Online Bond Platform Providers (OBPPs) web and mobile platforms.

It is to be noted that the existing SEBI credit ratings (ranging from AAA to D) are mapped into six distinct risk levels, spanning from ‘Lowest Credit Risk’ to ‘high to very High risk of default’, with each level represented by a specific colour.

The Union Cabinet has approved a commitment of ₹10,000 crore for the establishment of the SME Growth Fund (SGF). Under this framework, the centre will provide the amount to an Alternative Investment Fund (AIF) to support Small and Medium Enterprises (SMEs).

The initiative aims to provide growth-oriented capital for SMEs in manufacturing, services, technology, and innovation-driven sectors. It is designed to enable the emergence of “champion Indian enterprises” across strategic value chains.

The SEBI has approved several regulatory reforms to revamp Portfolio Management Services (PMS) and streamline settlement frameworks.

The board introduced the “PRIM” framework, allowing PMS providers to invest in direct mutual fund schemes and Specialised Investment Funds (SIFs). The minimum ticket size for SIFs is set at ₹25 lakh. Discretionary PMS can now invest up to 10% of client Assets Under Management (AUM) in investment-grade unlisted debt with client consent.

SEBI revised the settlement framework by introducing a formula-based method for settlement amounts and a fast-track mechanism for disclosure-related violations up to ₹10 lakh. The application window for settlement is extended from 60 to 90 days, with a one-time 90-day window for pending cases.

The rules for Vault Managers are updated to cover bullion-linked Exchange Traded Funds (ETFs) and derivatives, with their minimum net worth requirement increased to ₹75 crore. SEBI also eased retrospective listing norms for unlisted Non-Convertible Debentures (NCDs) and approved a fourth settlement scheme for illiquid stock-option cases.

SEBI has launched a nationwide investor-awareness campaign named “Project Jagrook” in Chandigarh, which will run until March 2027.

The initiative aims to improve financial literacy in rural areas and educational institutions, while warning investors against anonymous tips, finfluencers, and exaggerated return claims.

Union Minister Nirmala Sitharaman has launched an Alternative Investment Fund (AIF) named ‘IIT Madras Unicorn Frontier Fund-I’ during the 7th edition of ‘IITMAA Sangam’ (the annual conference of the IIT Madras Alumni Association) in Bengaluru.

The fund is a joint initiative between the IIT Madras and Unicorn India Ventures (UIV). The minister also released a book titled “Cashless Nation: How UPI Changed Everything”, authored by Santanu Paul and B Sambamurthy.

NABKISAN Finance Ltd, a subsidiary of the National Bank for Agriculture and Rural Development (NABARD), has listed the first Social Bond in India dedicated to the Water, Sanitation and Hygiene (WASH) sector on the National Stock Exchange (NSE). The bond raised ₹180 crore.

The 5-year bond has a coupon rate of 8.1% and is scheduled to mature in September 2031. It is to be noted that the instrument has been assigned the highest domestic credit ratings of CRISIL AAA (Stable) and CARE AAA (Stable).

Sagarmala Finance Corporation Ltd has launched the inaugural blue bond in India. The bond aims to raise ₹600 crore, with a ₹500 crore green shoe option, and has a tenor of 10 years.

The debt offering received an AA+ rating, signifying its status in the upper tier of domestic debt instruments, and SBI Capital Markets served as the arranger for the issuance. It is to be noted that SMFCL is the first NBFC in India dedicated to the maritime sector.

RBI has issued final directions titled ‘RBI (Commercial Banks - Minimum Capital Requirements for Market Risk) Directions, 2026’ outlining the minimum capital requirement for market risk under the Basel III framework for commercial banks. The new framework will come into effect on April 1, 2027.

Additionally, the RBI has eased KYC requirements for Foreign Portfolio Investors (FPIs), allowing them to submit original certified copies of specified documents certified by authorised authorities outside India. These directions came into force with immediate effect from September 18, 2026.

The Institute of Chartered Accountants of India (ICAI) has issued the ‘Standard on Sustainability Assurance (SSA) 5000, General Requirements & Framework for Sustainability Assurance Engagements’.

The SSA 5000 provides a principle-based framework covering climate, labour practices, and biodiversity, aligned with the International Auditing and Assurance Standards Board (IAASB) International Standard on Sustainability Assurance (ISSA) 5000. The standard will become applicable from April 1, 2027.

RBI has issued directions to alter the valuation norms for units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) held by All-India Financial Institutions (AIFIs).

The revised valuation directions came into effect immediately. It is to be noted that the India REIT market hits $17.7 billion, overtakes Hong Kong to become Asia’s 4th largest.

The National Stock Exchange of India (NSE) has facilitated the first tokenized bond issuances in India worth ₹1,000 crore on its Electronic Bidding Platform (NSE EBP) under the SEBI “Regulatory Sandbox Framework, 2020”.

The Appointments Committee of the Cabinet has approved the reappointment of Kamlesh Chandra Varshney as a Whole-Time Member (WTM) of the Securities and Exchange Board of India (SEBI).

The SEBI has signed an MoU with the European Securities and Markets Authority (ESMA) to strengthen bilateral cooperation and the exchange of information.

The collaboration specifically focuses on Central Counterparties (CCPs) regulated and supervised by SEBI.

The National Commodity & Derivatives Exchange Limited (NCDEX) has launched “RAINCHNNAI”, a rainfall-based weather derivatives contract in Chennai to help market participants hedge risks associated with the Northeast (NE) monsoon.

The contract uses a cash-settled futures model to track rainfall deviations in Chennai between September and December. It is to be noted that the NE monsoon, also known as the retreating monsoon, contributes nearly 70% of the annual rainfall in Chennai.

The SEBI has granted a Category-I merchant banking licence to Zerodha Corporate Advisors, a subsidiary of Zerodha, to enter the investment banking sector focusing on capital market services.

As per the new regulations by SEBI, Category-I merchant bankers are authorised to manage main-board public issues and perform underwriting activities. It is to be noted that the minimum net worth requirement for Category-I is increased to ₹50 crore from ₹5 crore, and the underwriting capacity for these entities is capped at 20 times their liquid net worth.

The Securities and Exchange Board of India (SEBI) has introduced the ‘IT Resilience Index’ (ITRI) Framework for Market Infrastructure Institutions (MIIs) to evaluate the robustness and operational resilience of their critical Information Technology (IT) systems.

The ITRI will assess the technology systems of MIIs using nine parameters.

Within the framework, availability and security are assigned the highest weightage of 20% each.

Integrity, governance, reliability and monitoring, business continuity, and modularity and flexibility each carry a 10% weightage, while scalability is allocated 5%.

The Early Warning System (EWS) and Real Time Monitoring of Service Delivery must be operationalised by February 2027, with the inaugural ITRI computation covering the half-year ending March 2027.

The SEBI has launched two new web portals, “SEBI Incident Reporting” and “Cyber Suraksha”, to strengthen cybersecurity and information sharing in the securities market ecosystem.

The “SEBI Incident Reporting” portal is an updated version of the existing system designed for structured, timely, and actionable reporting of cyber-incidents.

The “Cyber Suraksha” portal will serve as a centralized hub for sharing cybersecurity information, including vulnerability warnings, policy measures, and incident insights.

The SEBI has released a consultation paper proposing a mandatory, colour-coded “Credit Risk-o-Meter” for debt securities to help investors assess and compare credit risks. This mechanism is based on the existing “Risk-o-Meter” framework for Mutual Funds (MFs), which classifies investment risk into six levels from “Low” to “Very High”.

The new meter will map the conventional credit rating scale (AAA to D) into six visual categories: Lowest credit risk, Very low credit risk, Low credit risk, Moderate credit risk, Moderate risk of default, and High to very high risk of default.

Bombay Stock Exchange (BSE) has signed an MoU with the PHD Chamber of Commerce and Industry (PHDCCI) to facilitate equity financing for Micro, Small and Medium Enterprises (MSMEs) through capital markets.

PMS Bazaar, an alternative investments platform, has partnered with NSDL Database Management Ltd (NDML) to facilitate the SEBI Accredited Investor certification process for eligible investors and entities.