Regulatory Roundup

A few regulatory changes in September 2025, and how they will impact you

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CAPITAL MARKETS

Change: The Securities and Exchange Board of India (Sebi), in a circular dated September 5, issued new rules for know-your-customer (KYC) registration agencies (KRAs) for facilitating winding down of their businesses in an “orderly manner”.

Impact: With the new rules in place, investors will not have to undergo the KYC verification process again if their KRA decides to, or is compelled to wind down their operations. It will ensure that investor records are safely moved to another KRA and services continue without disruption.

Change: Sebi has proposed changing the method of determining how the closing prices of stocks are determined. At present, India uses the Volume Weighted Average Price (VWAP) system. Sebi plans to shift to the Closing Auction Session (CAS), which is globally practised and is considered more stable.

Impact: Besides aligning with global practices, it will also bolster passive investment and reduce tracking error.

Change: Sebi has issued fresh guidelines for the Social Stock Exchange (SSE), sharpening the eligibility norms for not-for-profit organisations and putting in place tougher disclosure and reporting requirements. The changes were notified through a circular dated September 19.

Impact: The regulator’s move aims to bring greater consistency in the types of entities that can seek registration. It will also ensure that only well-established organisations with a recognised legal base are allowed on to the platform.

Change: Sebi issued a circular on September 19 aimed at simplifying the process of inheritance of securities.