SEBI Reviews LODR, PMS Rules; Focus On Rationalisation: Chairman Tuhin Kanta Pandey | Business News
Why It Matters
The overhaul will ease regulatory burdens, boost market efficiency, and ensure Indian securities markets stay competitive globally.
Key Takeaways
- •SEBI will review LODR and settlement regulations for simplification.
- •Portfolio Management Services rules slated for rationalisation after six years.
- •Consultation paper to be released, incorporating industry and investor feedback.
- •SEBI to assess RBI draft guidelines on bank guarantees for proprietary trading.
- •Changes aim to reduce compliance burden and enhance market transparency.
Summary
SEBI Chairman Tuhin Kanta Pandey said the regulator will launch a comprehensive review of the Listing Obligations and Disclosure Requirements (LODR) and the Portfolio Management Services (PMS) framework, signalling a push to modernise rules that have been static since 2020‑2022.
The review will examine settlement regulations, bank‑guarantee provisions and other operational aspects that have drawn industry criticism. After six years, SEBI plans to rationalise the rules based on feedback from investors and market participants, and will issue a consultation paper outlining the proposed changes.
Pandey emphasized, “We will undertake a review of LODR and settlement regulations… and also the PMS regulations in that spirit,” and noted that SEBI will consider recent RBI draft guidelines on proprietary‑trading guarantees, reflecting coordination between the two regulators.
If adopted, the streamlined rules could lower compliance costs for banks and asset managers, improve market transparency, and align India’s capital‑market framework with global best practices, affecting issuers, investors and service providers alike.
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