The Securities and Exchange Board of India (SEBI) has approved a series of significant reforms aimed at enhancing investor convenience, simplifying compliance procedures and strengthening the country’s capital market framework. At its 214th Board Meeting held in Mumbai, the market regulator introduced several measures to make it easier for legal heirs and claimants to inherit shares and other securities held in the name of deceased investors. SEBI believes the reforms will help address long-standing procedural challenges faced by families during the transmission of financial assets.
One of the key decisions is the introduction of a new Quick Transmission Processing (QTP) category for small-value claims. The initiative is designed to accelerate the transfer of securities to legal heirs and claimants while reducing documentation requirements. Under the revised framework, several procedural formalities will be simplified, making the transmission process faster and more efficient.
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The regulator has also enhanced the limits for simplified documentation and removed the mandatory requirement of submitting a Permanent Account Number (PAN) in certain cases. In addition, SEBI has approved the acceptance of QR code-enabled death certificates to facilitate easier and more reliable verification. Market observers believe these measures will significantly reduce delays faced by families seeking access to investments following the death of an investor.
In another major decision, SEBI approved the reintroduction of open-market share buybacks through stock exchanges. The revised framework will come into effect from August 1, 2026. However, the regulator has paired the move with stricter compliance requirements and revised timelines aimed at improving transparency and protecting investor interests.
The Board also provided relief to the mutual fund industry by allowing fund houses to undertake intraday borrowings to manage temporary liquidity mismatches. Industry experts say the move will help asset management companies handle short-term cash-flow requirements more efficiently while ensuring smoother operations and greater protection for investors.
For Alternative Investment Funds (AIFs), SEBI has approved measures to streamline regulatory processes. Under the GARUDA framework, approval timelines for launching new funds will be significantly reduced, with applications expected to be processed within approximately ten working days. The move is expected to improve operational efficiency within the investment industry and enable faster introduction of new investment products.
The regulator also approved reforms relating to securitised debt instruments in alignment with the framework prescribed by the Reserve Bank of India. Additionally, measures have been cleared to deepen India’s municipal bond market through refinancing mechanisms and pooled financing structures. Experts believe these initiatives could create new fundraising opportunities for local bodies and support infrastructure development projects across the country.
SEBI has further approved a review of the SME capital-raising framework for the financial year 2026-27. The objective is to strengthen access to capital for small and medium-sized enterprises while maintaining appropriate investor safeguards. At the same meeting, the regulator adopted a new Code of Conduct for its members and employees, reinforcing conflict-of-interest standards and disclosure requirements.
Market experts have described the latest decisions as important steps toward improving transparency, efficiency and investor confidence in India’s financial markets. The reforms are expected to reduce administrative burdens, improve market accessibility and strengthen regulatory oversight across multiple segments of the financial ecosystem.
Particular attention has been drawn to the measures relating to deceased investors, as millions of families often face lengthy procedures while attempting to claim inherited securities. By simplifying documentation requirements and introducing a fast-track mechanism for smaller claims, SEBI aims to make the process more investor-friendly and less cumbersome.
According to the regulator, the broader package of reforms is intended to enhance transparency, improve investor convenience and further strengthen India’s capital markets ecosystem. Industry participants expect the changes to support market development while making financial services more accessible and efficient for investors across the country.
