SEBI Proposes Major Revisions to Stock Trading Regulations

The Securities and Exchange Board of India (SEBI) has proposed a comprehensive overhaul of trading regulations at stock exchanges. This initiative aims to consolidate overlapping provisions and simplify compliance for market participants. With 54 proposed changes, SEBI seeks to merge rules for equity and commodity segments, enhance transparency in bulk and block deal disclosures, and standardize penalties. The overall goal is to promote ease of doing business and reduce the compliance burden on exchanges, aligning with the Union Finance Minister's vision for a more efficient financial sector.

By Narendra Chaudhary Jan 10, 2026, 14:58 IST

Significant Changes in Trading Regulations

Mumbai, Jan 10: The Securities and Exchange Board of India (SEBI) has put forward a proposal aimed at a significant revision of trading regulations at stock exchanges. This initiative seeks to streamline overlapping rules and facilitate compliance for market participants.

The consultation document suggests the integration of various trading-related provisions, including price bands, circuit breakers, bulk and block deal disclosures, call auctions, and liquidity enhancement schemes, as stated in an official announcement.

In total, SEBI has proposed 54 amendments, which involve consolidating rules for both equity and commodity markets into a unified framework. This consolidation includes aspects such as margin trading facilities (MTF), unique client codes, PAN requirements, trading hours, and daily price limits.

"The provisions related to bulk and block deal disclosures may be combined. Additionally, clarity should be enhanced regarding bulk deal disclosures, meaning that information should be shared by exchanges at the client level (i.e., at the PAN level) executed across members," the statement indicated.

The regulator also mentioned that rules applicable to clearing corporations should be compiled into a separate master circular to prevent regulatory overlap.

"Penalties imposed by Exchanges and Clearing Corporations should be standardized for modifications of client codes and OTR allocations," the statement further noted.

The proposal includes merging bulk and block deal disclosures and transitioning the dissemination to the client PAN level rather than the UCC level, which aims to minimize manual reporting by brokers and enhance transparency.

Other suggested revisions include presenting market-wide circuit breaker rules, dynamic price band adjustments, IPO price bands, and call auction procedures in a tabular format, eliminating redundant operational examples.

Overall, these proposed regulations are designed to simplify compliance requirements, eliminate unnecessary provisions, and discontinue duplicative processes, thereby promoting ease of doing business (EODB) and alleviating the compliance burden on exchanges.

Earlier, Union Finance Minister Nirmala Sitharaman had emphasized the need to simplify, ease, and reduce compliance costs for financial sector participants through a consultative approach.