SEBI Report: 97% Institutional F&O Profits via Algorithmic Trading; Retail Traders Face Losses

SEBI Introduces Closing Auction Session (CAS) to Replace VWAP; Concerns Over Timing and Retail Readiness

SEBI implemented Closing Auction Session (CAS) from August 2026 to replace the VWAP system for determining closing prices, aiming to align with developed markets. However, thin volumes, a blind spot in order matching, and mismatch with derivatives trading timing have raised concerns. Experts suggest the move is correct but India's market may not be mature enough yet.

ICAI Issues SSA 5000 for Sustainability Assurance, Effective April 1, 2027

ICAI has issued SSA 5000, a new standard for sustainability assurance effective April 1, 2027, aimed at bringing audit-like discipline to ESG disclosures and combating greenwashing. This is a critical regulatory shift for listed companies and the growing sustainability consulting market.

SEBI Proposes Digital KYC Norms for NRIs/OCIs, Eases Physical Presence for FATF-Compliant Countries

SEBI has proposed major relaxations in KYC norms for individual overseas investors (NRIs, OCIs, foreign nationals) by allowing digital onboarding without physical presence for residents of FATF-compliant countries. This move aims to simplify entry into India's securities market, reduce paperwork, and boost foreign portfolio investment by enabling KYC portability across intermediaries.

SEBI Revises Settlement Framework: New Formula, Disgorgement Separation, and Common Advertising Code Approved

SEBI has revamped its settlement proceedings framework with a new formula to calculate settlement amounts, separating disgorgement of wrongful gains to avoid double counting. The regulator also approved a common advertising code for regulated entities and backed the closing auction session. These changes aim to simplify processes and reduce compliance burden while maintaining discretion to reject egregious cases.

ICAI Reviews CA Curriculum to Integrate AI, ESG, Forensic Auditing; Launches AURA 2.0 and International Programme

ICAI is overhauling the CA curriculum to include AI, data analytics, ESG, and forensic auditing to keep pace with global technological shifts. It is also developing an international CA programme for countries like Mauritius, Nepal, and African nations, and launching advanced AI training for members and students.

SEBI Grants In-Principle Approval for NSE Settlement at ₹1,491.21 Crore for Past Lapses

SEBI has accepted NSE's settlement offer of ₹1,491.21 crore to resolve long-standing regulatory lapses related to governance failures and inequitable access for trading members. This in-principle approval is a critical step for NSE ahead of its mega IPO, signaling regulatory closure on past issues.

SEBI SCORES Complaints Drop 9% in FY26; FPI Ownership at 17-Year Low of 15.8%

SEBI’s SCORES platform saw a 9% drop in investor complaints in FY26 due to regulatory tightening in F&O trading, while FPI ownership in Indian equities fell to a 17-year low of 15.8% amid outflows of $19.69 billion. Domestic institutions absorbed the pressure with record inflows of Rs 8.5 lakh crore. This signals a structural shift in market participation and the effectiveness of SEBI’s regulatory measures.

SEBI Revamps SLB Scheme, Launches Setu Portal, Pilots Bond Tokenisation on Blockchain

SEBI is modernizing the Securities Lending and Borrowing (SLB) scheme to improve price discovery and link cash and derivatives markets. It also launches a single online portal (Setu) for intermediaries and a pilot project for tokenising corporate bonds using blockchain. These reforms are crucial for capital market efficiency and are highly exam-relevant for UPSC, Banking, and SSC.