On Aug. 7, IND SEBI issued circular re joint annual inspection policy.
IND SEBI issued circular on joint annual inspection policy for market infrastructure institutions (MIIs) to reduce inspection burden on intermediaries.
Outline of Circular
IND SEBI introduced joint annual inspections by stock exchanges, depositories, and clearing corporations instead of separate inspections to reduce resource diversion and operational disruption for brokers and depository participants.
Revised inspection criteria prioritize top 25 entities with high penalties for non-reporting and margin violations, top 25 entities by investor complaints as percentage of active clients, and top 25 entities with high risk scores under risk-based supervision.
Entities not falling under priority categories inspected at least once every three years.
Professional clearing members inspected jointly by clearing corporations once every two years; entities inspected in preceding two years or with no trades in last two financial years may be excluded.
MIIs to establish information sharing mechanism and frame joint standard operating procedure by Nov. 1, 2025, designating lead institution for enforcement actions.
Effectiveness
The provisions in the circular are effective from Dec. 1, 2025.
