The Securities and Exchange Board of India (“SEBI”) has issued a notification dated February 13, 2025, introducing the Securities and Exchange Board of India (Procedure for Making, Amending, and Reviewing of Regulations) Regulations, 2025.
Key Highlights of the Notification:
1. Structured Framework for Regulation Making
The new regulations establish a systematic process for drafting and implementing regulations to enhance transparency and stakeholder engagement. SEBI aims to ensure that all regulations are made in a structured and consultative manner.
2. Public Consultation Mandate
To promote inclusivity, SEBI will invite public comments before finalizing any regulations. Listed entities, investors, industry stakeholders, and regulatory bodies will be able to submit feedback on proposed regulatory changes through SEBI’s official website. A minimum of 21 calendar days will be provided for public consultation.
3. Approval Process & Consideration of Public Feedback
SEBI’s relevant department will compile public feedback received and analyze the comments before proceeding with regulation finalization.
If any public suggestions are rejected, SEBI will publish the rationale for rejection on its website.
4. Regulation Amendments & Periodic Review
Any amendments to existing regulations will follow the same structured process as new regulations.
SEBI departments will conduct regular reviews of regulations to ensure they remain relevant to evolving market conditions, global best practices, and judicial rulings.
5. Exceptional Circumstances & Urgent Regulations
In situations where public consultation may hinder the purpose of a proposed regulation, the SEBI Chairperson has the authority to waive or shorten the consultation period.
Such cases will be documented and reported to the SEBI Board.
6. Applicability & Effective Date
The notification is effective immediately upon publication in the Official Gazette.
Existing regulations remain valid unless specifically amended or repealed.
Impact on Market Participants
This structured framework will ensure greater transparency, efficiency, and stakeholder participation in SEBI’s regulatory process. By standardizing the methodology for making, amending, and reviewing regulations, SEBI aims to enhance regulatory certainty and investor confidence in the securities market.
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