Sebi notifies procedure to amend rules, mandates public consultation

To bring more transparency, markets watchdog Sebi has specified a new procedure for making regulations, mandating public consultation and for engagement of stakeholders for modifying norms.

In a gazette notification, the regulator has notified Sebi (Procedure for making, amending, and reviewing of regulations) Regulations, 2025.

To make regulations, Sebi will publish on its official website the proposal containing the suggested changes to the policy; a statement of the regulatory intent and objectives of the proposed regulations; and the manner, process and timelines for receiving public comments.

"A minimum of 21 calendar days shall ordinarily be provided for receiving public comments", Sebi said.

On receipt of public comments, the rationale for rejection, if any, of comments will be published on the Sebi's official website.

Thereafter, the proposed regulations and the related agenda paper will be considered by Sebi. If the agenda paper has been prepared following a public consultation, it will include a systematic compilation of comments received or a summary of such comments, and the remarks thereon of Sebi.

"Where the Board (Sebi) is of the opinion that it is expedient in the interest of the investors and the regulation and development of the securities market that the adherence to the public consultation process would defeat the purpose of the proposed regulation, the chairperson may dispense with the process of public consultation or reduce the time period for receiving public comments," the regulator said.