The Securities and Exchange Board of India has proposed significant changes to how stockbrokers calculate variable net worth requirements, moving away from the current 10% of average daily cash balances method. According to Mint, SEBI's consultation paper recommends variable net worth should be an aggregate of two elements: 10% of the average credit balance of all clients over the previous six months across exchanges and segments, plus the number of active clients onboarded directly by the broker and through authorized persons. The regulator has also proposed a base capital requirement of ₹50 lakh for brokers servicing more than 10,000 and up to 50,000 clients, with an additional ₹50 lakh for every further 50,000 clients or part thereof. As reported by Mint, credit balance refers to the total funds belonging to clients that are held by the broker, including both settled cash and amounts from recent transactions that may not yet be settled, which is broader than the current cash balance calculation.
The Securities and Exchange Board of India has barred eight entities, including Ashok Maheshwari, from the securities market for up to four years in a comprehensive front-running case involving trades of a portfolio management service provider. According to The Hindu BusinessLine, Ashok Maheshwari and Darshan Bakul Shah have been debarred for 48 months, including the period already served under the interim order, while Khusboo Darshan Shah and Darshan Bakul Shah (HUF) have completed their 24-month market restraint, with no further debarment imposed. Benzer Department Stores Pvt. Ltd. and Mihir Dhirajalal Savla have been debarred for 24 months, while CHL Stock Concepts Pvt. Ltd. and Chirag Mahendra Shah have been debarred for 36 months. The regulator has also restrained Ashok Maheshwari, Darshan Bakul Shah, and Chirag Mahendra Shah from acting as directors or key managerial personnel in listed companies or SEBI-registered intermediaries for 2 years.
As reported by The Hindu BusinessLine, Whole-time member Amarjeet Singh stated that the noticees "carried out a scheme of front running the trades of a Portfolio Management Service provider… to make unlawful gains" during April 1, 2021 to May 31, 2022. The entities traded in "common scrips… proximate to trades of the Big Client," identified as Unifi Capital Pvt. Ltd., thereby exploiting advance knowledge of orders. According to the 78-page order, "Noticees 1 and 2 (along with other Noticees) collaborated to execute a carefully crafted scheme of front running the orders of the Big Client with the help of non-public information about substantial orders of the Big Client shared by Noticee 1 with Noticee 2 in return for an arrangement of sharing profits made out of such trades," which Singh described as "a fraudulent, manipulative, and an unfair trade practice."
The regulator has imposed significant financial penalties totaling ₹1.52 crore, with individual penalties ranging from ₹15 lakh to ₹25 lakh. As reported by The Hindu BusinessLine, the entities have been directed to disgorge unlawful gains aggregating ₹1.29 crore along with simple interest at the rate of 12 percent per annum from May 31, 2022 till payment. The amount is to be credited to the Investor Protection and Education Fund within 45 days, while the noticees have been directed to pay penalties within 45 days. The order comes in continuation of SEBI's interim action in April 2024 and comes into force with immediate effect.
The Securities and Exchange Board of India has conducted comprehensive search and seizure operations across Mumbai, Bhuj, Bengaluru and Hyderabad as part of a probe into suspected stock manipulation activities. According to CNBC TV18, the investigation team conducted searches at these locations last week, with searches lasting three days and concluding late Friday night. Bhuj emerged as a key centre in the case, suggesting a wider operational spread beyond major market hubs. The searches led to the seizure of documents and digital evidence that could help establish the alleged manipulation network, as reported by Moneycontrol. The latest developments show SEBI has now expanded its probe to include RM Drip and Sprinklers Systems Limited and R&B Denims Limited, with both companies confirming searches at promoter-director premises in exchange filings.
Looking ahead, Pandey outlined SEBI's priorities including accelerating regulatory simplification, fostering innovation for market development, investing in technology-led supervision, and strengthening governance and risk management. According to The Hindu BusinessLine, the regulator is already transitioning to an e-office environment and building capacity in data analytics, technology and interdisciplinary thinking. In the past year, SEBI has focused on simplifying and rationalising regulations to ease doing business, removing ambiguities and facilitating capital formation, while introducing investor protection measures that could serve as models for other jurisdictions. As reported by The Hindu BusinessLine, Pandey emphasized that these reforms are not isolated steps... they are part of a continuous effort to build trust, efficiency and innovation into the market. According to The Hindu BusinessLine, Finance Minister Nirmala Sitharaman highlighted the evolving nature of investor protection, stating that "investor protection must evolve from a defensive function into a developmental function."
In a separate regulatory development, The Economic Times reports that SEBI has extended the deadline by six months till October 27 for debenture trustees to comply with the mandate to segregate activities that fall outside the market watchdog's regulatory ambit. The move came after SEBI received an industry push highlighting operational challenges in establishing the necessary systems and processes for effective implementation. As reported by The Economic Times, SEBI amended the Debenture Trustee rules in October 2025, stipulating that a debenture trustee holding a valid certificate of registration may transfer its non-Sebi-regulated activities to separate business unit(s) within six months. The operational framework, including terms and conditions governing activities undertaken by debenture trustees, was prescribed the following month. Under the framework, DTs shall undertake activities not regulated by SEBI only on an arms' length basis through one or more separate business unit of the DT, segregated by a Chinese Wall and ring-fenced from the SEBI-regulated activities.
