SEBI has proposed an automatic approval route for specified related activities and investments by recognised stock exchanges and depositories. The 22 October consultation excludes recognised clearing corporations and retains prior regulatory approval for activities outside the qualifying routes.[3]
Proposed financial and governance limits
| Measure | Published position |
|---|---|
| Annual aggregate deployment | Lower of 5% of the preceding year-end MII net worth and regulatory minimum net worth |
| Capital after deployment | At least 1.5 times regulatory minimum net worth |
| Aggregation | MII and subsidiary deployments combined, regardless of funding source |
| Internal approval | Governing board approval for each activity or deployment |
| Regulatory reporting | Half-yearly report within 30 days |
Route A covers securities-market activities directed by SEBI, specified transfers within the group and deployments made by an operating subsidiary solely from its own operational funds. Route B covers functionally similar activities in an investee regulated by another Indian financial-sector regulator, where SEBI previously approved the activity and it remains unchanged.[3]
The proposal also requires arm’s-length brand arrangements, ring-fenced resource-sharing agreements, continuing fit-and-proper compliance and controls against conflicts with the MII’s core role. It is a consultation, not an operative relaxation.[3]
Sources & further reading
- India's markets regulator proposes easing approval rules for some exchange investments Reuters · 22 Oct 2026 · Accessed 22 Oct 2026
- Market Regulation Department responsibilities SEBI · Accessed 22 Oct 2026
- Consultation on an automatic approval route for MII related activities SEBI · Accessed 30 Oct 2026