The Securities and Exchange Board of India (SEBI), on January 09, 2026, issued a Consultation Paper on Circular for Trading at Stock Exchanges seeking public comments on proposed measures for Ease of Doing Business (EODB). The consultation forms part of SEBI’s consultative approach aligned with the Union Budget FY 2023–24 announcement to simplify and reduce compliance costs in the financial sector.
The consultation paper proposes modifications to Chapter 1 (Trading) of the Master Circular for Stock Exchanges and Clearing Corporations (MSECC) and Chapter 1 (Trading) and Chapter 3 (Daily Price Limits and Position Limits) of the Master Circular for Commodity Derivatives (MCCD). Key proposals include consolidation of bulk and block deal disclosure requirements, enhanced clarity on client-level disclosures, tabulation of market-wide circuit breaker triggers, rationalisation of trading halt and resumption provisions, and consolidation of dynamic price band norms to eliminate duplication.
Overall, the proposals aim at simplification of regulatory requirements, removal of redundancies, consolidation of circulars, and improved clarity, thereby reducing compliance burden on stock exchanges and facilitating efficient market operations. The consultation paper envisages issuance of a single consolidated circular on Trading, replacing the applicable provisions for stock exchanges (including commodity derivatives exchanges) up to August 31, 2025.
