Tue Oct 01 17:37:09 UTC 2024: ## SEBI Makes Moves to Simplify & Regulate Indian Markets: Key Highlights

**Mumbai, India (October 1, 2024)** – The Securities and Exchange Board of India (SEBI) held its quarterly board meeting on September 30th, resulting in a series of significant regulatory changes and announcements.

**Key Developments:**

* **Relaxed Framework for Passive Mutual Funds:** SEBI has introduced a “MF Lite” framework for entities seeking to launch only passive mutual fund schemes, simplifying the regulatory requirements for sponsors, trustees, and disclosure processes.
* **Expanded Definition of “Connected Person”**: SEBI has broadened the definition of “connected person” under insider trading regulations to include firms, partners, employees, and individuals sharing a household with a “connected person”.
* **Simplified Nominee Limit & Transmission Process:** The regulator raised the nominee limit to 10 and streamlined the transmission process for smoother handling of deceased investor accounts.
* **New Investment Product Merging Mutual Funds & Portfolio Management:** SEBI is introducing a new investment product that bridges the gap between mutual funds and portfolio management services, providing investors with a wider range of options.
* **Mandated UPI-Block Mechanism for Brokers:** Qualified stock brokers will be required to provide UPI-block mechanisms, ASBA-like facilities for the secondary market, or three-in-one trading accounts by February 1, 2025, aiming to enhance investor security and convenience.
* **Monitoring & Compliance for ODI Issuing FPIs:** SEBI announced that a monitoring and compliance mechanism will be established to ensure that ODI-issuing Foreign Portfolio Investors (FPIs) submit relevant information to depositories.
* **No Immediate Tightening of Futures & Options Rules:** Contrary to market expectations, SEBI decided against tightening rules on futures and options transactions at this time.
* **Arunachal Pradesh Seeks Increased Funding:** The state’s Deputy Chief Minister, Chowna Mein, has urged the Centre for more funds for development projects as external assistance from organizations like the World Bank has been hindered by Chinese protests.
* **Fine Imposed on Anand Rathi Share and Stock Broker:** SEBI fined brokerage firm Anand Rathi Share and Stock Broker Rs 10 lakh for violating stock broker regulations and norms.

**The Board meeting marked a significant step towards streamlining and regulating the Indian financial markets, focusing on enhancing investor protection, fostering market stability, and providing greater options for investors.**

**This article is for informational purposes only and should not be considered investment advice.**

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