Regulatory actions by SEBI, RBI, and major global regulators up to July 31, 2025:

SEBI

Market Manipulation & Surveillance
• Jane Street case expansion: SEBI widened its probe into alleged index manipulation. Exchanges (BSE, NSE) are required to supply detailed trading data from Jan 2023 to May 2025, including mark-to-market P/L, positions, and derivatives expiry trades
• Trading member compliance enhancement: From July 1, SEBI mandates exchanges to monitor corrective actions post-inspections. Non compliance beyond 45 days may result in client onboarding bans or disabling of trading terminals

Systems & Segment Reforms
• Simplified portfolio manager framework: SEBI issued an updated Master Circular consolidating 39 earlier ones effective July 16. Covers compliance, governance, operations, and disclosures
• VCF Settlement Scheme 2025: Launched on July 21 to January 2026, allowing Venture Capital Funds transitioning to AIFs to settle pending regulatory actions
• NSEL Settlement Scheme (proposal): Public consultation launched on July 11, targeting brokers facing orders from NSEL disputes; open until February 2026
• ESG Rating Provider overhaul: Master Circular issued July 11 consolidating standards for ESG raters; mandates six-score metrics, governance segregation, and disclosure uniformity
• Derivatives reform: New rules for equity derivatives include Delta based open interest calculation and stricter Market-Wide Position Limits to mitigate concentration risk.
• SEBI board overhaul: June board meeting unveiled sweeping reforms to reduce compliance burden, align with global norms, and increase market access
• G Sec FPI reforms: From mid June, relaxed KYC and disclosure norms for Foreign Portfolio Investors in government bond market to encourage long-term flows

Enforcement Actions
• Darshan Orna manipulations: SEBI imposed ₹3.87 crore penalties on 11 entities for using social media to manipulate share prices
• Gensol Engineering order: Confirmatory order delivered against promoters for fund diversion and document falsification.

Reserve Bank of India
• Regulatory simplification: Announced consolidation of nearly 3,000 circulars, master directions, and notifications into 33 thematic categories to reduce compliance complexity and improve clarity
• Growth warnings to banks/NBFCs: On July 30, RBI cautioned against bypassing internal controls, highlighting risks from aggressive expansion and urging disciplined risk management
• Phased CRR reduction: Earlier in July, RBI laid a schedule to cut Cash Reserve Ratio from 4% to 3% by Nov 29, 2025, to add ₹2.5 lakh crore of liquidity via four 25-bps tranches .

Global / International Context
• AI & algorithmic trading oversight: India’s Jane Street case is prompting global scrutiny. Other markets are preparing to reassess their regulatory frameworks for HFT and systemic risk from algorithmic strategies
• Regulatory collaboration indicators: SEBI’s cross-border data requests and legal cooperation are seen as part of a broader international effort to regulate emerging market HFT behavior

Investor Insights

Regulatory Key Action & Impact
SEBI: Expanded Jane Street probe & banned trading—-Strengthen market integrity

-Tightened post-inspection compliance—Enforce accountability & risk correction

-Consolidated master directives (PMs, ESG, VCFs): Simplify and modernize regulatory infrastructure

Derivatives segment reform: Limit excess risk, reduce volatility

Eased FPI norms in G Sec segment Attract stable foreign capital
RBI: Regulatory consolidation into 33 categories—-Boost clarity, reduce compliance complexity

Warning on risk bypass by banks / NBFCs: Uphold regulatory discipline
CRR reduction phasing campaign : Inject liquidity into banking system
Global Impact: Cross-market caution on HFT/regulatory alignment–Guide policy convergence on algorithmic trading