Consultation Paper
SEBI mulls consultation paper for changes in master circular for bourses
This story was originally published at 22:23 IST on 9 January 2026
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MUMBAI – The Securities and Exchange Board of India floated a consultation paper proposing changes to the Master Circular for Stock Exchanges and Clearing Corporations, and the Master Circular for Commodity Derivatives. This is being done for ease of doing business and to reduce cost of compliance for participants in the financial sector, as proposed by the finance ministry, SEBI said.
The market regulator proposed several changes, including disclosure-related provisions for bulk deals and block deals, framework for short selling, and equilibrium price, among others. It proposed to merge the disclosure paragraphs related to provisions for bulk deals and block deals to make it clearer. SEBI is also looking to remove duplicate provisions related to equilibrium price.
SEBI proposed to remove short-selling provision related to clearing corporations from the master circular for exchanges. Further, it plans to bring the short selling provision related to exchanges, written under Annexure 3, under the main body of the master circular. It wants to remove the current guidelines for market making in the cash segment, which does not include the SME segment. "Currently, there are no market making schemes under these provisions at any of the exchanges. Exchanges have preferred introducing market making through the provisions of liquidity enhancement schemes (LES), which are more flexible and principle based," SEBI said. End
Reported by Gopika Balasubramanium
Edited by Deepshikha Bhardwaj
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