SEBI Circulars 2026, Attempt Quiz and Download SEBI Circulars PDFs

Major regulatory changes introduced by SEBI (Securities and Exchange Board of India) in 2026 have significantly reshaped the functioning of India’s capital markets, impacting mutual funds, InvITs, brokers, listed entities, and investor protection frameworks. For aspirants awaiting the SEBI Grade A Notification, understanding these developments is crucial, as questions based on SEBI regulations, circulars, and current affairs are frequently asked in competitive exams. Covering areas such as market data usage norms, demat nomination reforms, IPO relaxation rules, and cybersecurity enhancements, SEBI Circulars 2026 offer a concise yet comprehensive view of the latest regulatory landscape. 

In this article, we have covered the latest SEBI Circulars 2026, important regulatory updates, practice quizzes, and downloadable PDFs to help you stay exam-ready. Key topics covered include:

• Infrastructure Investment Trusts (InvITs) regulations
• Index provider governance framework
• Market data usage restrictions
• IRRA system discontinuation
• Cybersecurity and AI risk monitoring
• Demat nomination rule updates

What are SEBI Circulars 2026 and why are they important?

SEBI Circulars 2026 are regulatory guidelines issued by the Securities and Exchange Board of India to regulate capital markets, strengthen compliance standards, and protect investor interests. These circulars impact mutual funds, InvITs, brokers, fintech platforms, index providers, depositories, and various market participants.

For competitive exam aspirants, these circulars are highly important because questions are regularly asked from recent regulatory reforms, compliance frameworks, investor protection measures, and market developments. The latest circulars also focus on improving cybersecurity, transparency, governance standards, and risk management practices across financial markets.

Download SEBI Circulars Practice Quiz

Download the SEBI Circulars Practice Quiz PDF containing important questions based on the latest SEBI regulatory updates. Practicing these questions will help you understand the key provisions of recent circulars and improve your preparation for regulatory and banking examinations.

Particulars	Link
SEBI May 2026 Circular Quiz	Download PDF
SEBI April 2026 Circular Quiz	Download PDF

Attempt SEBI Circulars Practice Quiz

Attempt the SEBI Circulars Practice Quiz to assess your understanding of important SEBI regulations, capital market developments, and investor protection measures that are relevant for upcoming competitive examinations.

1. Under SEBI’s revised Social Stock Exchange (SSE) framework, Social Impact Assessors are primarily responsible for:

A. Evaluating the profitability of listed companies
B. Assessing the social outcomes of projects undertaken by NPOs
C. Approving IPO applications of social enterprises
D. Monitoring stock price movements of social enterprises

2. SEBI reduced the minimum application size for instruments listed on the Social Stock Exchange from ₹2 lakh to:

A. ₹10,000
B. ₹5,000
C. ₹1,000
D. ₹500

3. Under the revised Minimum Public Shareholding (MPS) framework, what is the minimum public shareholding requirement that listed companies must maintain?

A. 15%
B. 20%
C. 25%
D. 30%

4. Which of the following is NOT considered public shareholding under SEBI regulations?

A. Retail Investors
B. Foreign Portfolio Investors
C. Qualified Institutional Buyers
D. Promoters

5. SEBI’s one-time relaxation regarding IPO observation letters was primarily introduced due to:

A. Changes in taxation policy
B. Weak market sentiment and low subscription concerns
C. Increase in merchant banking fees
D. Cybersecurity threats to stock exchanges

6. Under SEBI’s revised depository framework, if a lock-in cannot be technically created on securities, they must be marked as:

A. Restricted Transfer Securities
B. Suspended Securities
C. Non-transferable Securities
D. Conditional Holding Securities

7. The primary purpose of marking securities as “Non-transferable” is to:

A. Enable faster trading
B. Ensure transfer restrictions remain effective
C. Reduce settlement time
D. Facilitate overseas listing

8. SEBI’s PARVA framework has been introduced to verify:

A. Mutual fund NAV calculations
B. Past performance claims made by advisers and analysts
C. Corporate governance disclosures
D. Credit ratings of listed companies

9. Which entity has been designated as the interim agency under the PARVA framework?

A. CRISIL
B. ICRA
C. CARE Ratings
D. SEBI

10. Under SEBI’s FPI net settlement mechanism, net settlement is permitted for:

A. All trades
B. Only derivative trades
C. Outright trades
D. Cross-border block deals only

11. Under the FPI settlement framework, which type of transaction must continue to follow gross settlement?

A. Outright trades
B. Government securities trades
C. Non-outright trades
D. ETF transactions

12. SEBI’s fast-track mechanism for Alternative Investment Funds (AIFs) allows scheme launch after how many days of filing the PPM?

A. 15 days
B. 30 days
C. 45 days
D. 60 days

13. Under the AIF fast-track mechanism, the first close of the scheme must occur within:

A. 6 months
B. 9 months
C. 12 months
D. 18 months

14. SEBI’s revised framework for debenture trustees requires them to:

A. Increase capital adequacy ratio
B. Separate regulated and non-regulated activities
C. Maintain public shareholding of 25%
D. Register as investment advisers

15. The deadline extended by SEBI for compliance by debenture trustees regarding structural separation is:

A. 31 December 2026
B. 30 June 2026
C. 27 October 2026
D. 31 March 2027

16. Which of the following best describes the objective of SEBI’s Significant Index Provider framework?

A. Increase stock market liquidity
B. Regulate benchmark administrators and improve governance
C. Promote retail participation in derivatives
D. Control foreign investments in indices

17. Under SEBI’s Significant Index framework, the review of significant indices is conducted:

A. Monthly
B. Quarterly
C. Half-yearly
D. Annually

18. Which cybersecurity principle has SEBI emphasized under its advisory on AI-enabled cyber threats?

A. Trust but Verify
B. Open Access Architecture
C. Never Trust, Always Verify
D. Shared Access Governance

19. Zero Trust Network Access (ZTNA) primarily requires:

A. Automatic access to internal systems
B. Verification of every access request
C. Unlimited administrator privileges
D. Removal of multi-factor authentication

20. Under SEBI’s updated demat nomination rules, if the distribution among nominees is not specified, securities will be distributed:

A. To the first nominee only
B. According to succession law only
C. Equally among nominees
D. As decided by the depository

Answer Key:

Q. No.	Answer
1	B
2	C
3	C
4	D
5	B
6	C
7	B
8	B
9	C
10	C
11	C
12	B
13	C
14	B
15	C
16	B
17	C
18	C
19	B
20	C

SEBI Latest Circulars

Below is the list of the latest SEBI Circulars 2026 released so far. These circulars cover important regulatory developments across capital markets, infrastructure investment trusts, cybersecurity, market data usage, and investor protection.

Particulars	Download Now
Ease of doing investments	Download PDF
Revision of Monthly Cumulative Report	Download PDF
Status of SPVs post conclusion or termination of Concession Agreement	Download PDF
Permitted use of fresh borrowings for InvITs where Net Borrowings exceeds forty-nine percent of the value of InvIT assets	Download PDF
Norms for sharing and usage of price data for educational purposes	Download PDF
Discontinuation of Investor Risk Reduction Access (IRRA) platform	Download PDF
‘Significant Indices’ under SEBI (Index Providers) Regulations, 2024	Download PDF
Advisory on Emerging Advanced Artificial Intelligence (AI) Tools for Vulnerability Detection	Download PDF

What are InvITs and how does SEBI regulate borrowing limits?

Infrastructure Investment Trusts (InvITs) are investment vehicles that pool funds from investors and invest in infrastructure assets such as highways, roads, power projects, and urban infrastructure. Similar to mutual funds, InvITs allow investors to participate in infrastructure development while earning returns from these assets.

To maintain financial stability and prevent excessive leverage, SEBI has prescribed borrowing limits for InvITs. These regulations ensure that infrastructure projects continue to receive funding while safeguarding investor interests.

Section	Details
Borrowing Structure	Normal limit: up to 49% of net assets; beyond 49% only under SEBI conditions; extra borrowing allowed only for infrastructure purposes
Key Infrastructure Assets	Roads, expressways, irrigation projects, power generation, urban infrastructure
Importance	Supports national infrastructure development and improves connectivity and economic growth

What are the conditions for excess borrowing in InvITs?

SEBI permits InvITs to borrow beyond 49% of net assets only under specific conditions. The objective is to ensure that additional borrowings are used for productive infrastructure activities rather than speculative purposes.

Permitted uses of excess borrowing:

• Capital expenditure for new infrastructure projects
• Construction of new infrastructure assets
• Major repair and maintenance activities
• Debt refinancing under SEBI-approved conditions

Example:

• Construction of large infrastructure projects such as the Delhi–Mumbai Expressway
• Repair and modernization of existing infrastructure assets

What are SEBI refinancing rules for InvITs?

SEBI has prescribed clear refinancing norms for InvITs to ensure transparency and disciplined debt management. These rules help prevent misuse of borrowed funds and maintain clarity regarding debt obligations.

Key refinancing rules:

• Only the principal amount can be refinanced
• Interest payments cannot be refinanced
• No indirect transfer of interest liabilities
• Transparent debt management framework

Simple example:

• Existing loan principal: ₹100 crore
• New loan replaces only the ₹100 crore principal
• Interest obligations must be paid separately

What are SEBI market data usage rules in 2026?

SEBI has introduced new guidelines governing the usage of market data for educational purposes. The objective is to prevent misuse of market information and discourage the use of educational content as a disguised investment advisory service.

Category	Allowed Data Age	Purpose
General Users	30-day old data	Educational use only
NISM Institutions	1-day old data	Training programs only

Key restrictions:

• No buy or sell recommendations
• No stock tips or trading calls
• No suggestive references to securities
• No investment advisory usage

Effective Date: 1 July 2026

What is IRRA platform and why was it discontinued?

The Investor Risk Reduction Access (IRRA) platform was introduced to provide backup trading access when broker platforms faced outages or cyber incidents. It served as a contingency mechanism for investors during technical disruptions.

SEBI discontinued IRRA in 2026 because exchanges have significantly strengthened their cybersecurity infrastructure and system redundancy mechanisms.

Category	Details
Earlier Purpose	Backup trading access during system failure or cyberattack
Reason for Discontinuation	Strong cybersecurity systems, redundancy, and real-time monitoring
Current Safeguards	SOC monitoring, Zero Trust model, advanced cyber defense systems

What are SEBI significant index regulations?

With the growing popularity of passive investing, SEBI has introduced governance standards for index providers. Since indices such as Nifty and Sensex serve as benchmarks for mutual funds and ETFs, robust governance is essential.

Category	Details
Definition	Index with AUM above ₹20,000 crore (evaluated over 6 months)
Review Cycle	Twice a year (30 June and 31 December)
Removal Rule	If AUM stays below threshold for 3 years
Requirements	SEBI registration within 6 months + separate legal entity within 2 years
Purpose	Investor protection, transparency, and governance improvement

What are SEBI cybersecurity and AI concerns?

SEBI has highlighted the growing risks associated with advanced AI-powered tools capable of identifying system vulnerabilities. While these technologies can strengthen security, they can also be misused for cyberattacks.

To address these concerns, SEBI has enhanced cybersecurity standards across regulated entities.

Key SEBI measures:

• Continuous cybersecurity audits
• Daily monitoring of systems
• Strengthening Security Operations Centers (SOC)
• Adoption of Zero Trust Network Access (ZTNA)

Core principle:

“Never trust, always verify.”

• Every access request must be verified
• No automatic trust for users or devices
• Strict authentication mechanisms

What are SEBI demat account nomination rules?

SEBI has updated nomination requirements for demat accounts to simplify inheritance procedures and reduce legal disputes involving securities.

Category	Details
Single Account	Nomination mandatory
Joint Account	Nomination optional
Maximum Nominees	Up to 3 nominees allowed
Distribution	Equal share if not specified
Effective Date	1 September 2026

What is the one-time relaxation in IPO observation letter validity?

SEBI provided a one-time relaxation in IPO observation letter validity to support companies facing challenging market conditions and weak investor sentiment.

Particular	Details
Issue	IPO observation letter expiry concern
Earlier Validity	1 April 2026 to 3 September 2026
New Validity	Extended up to 30 September 2026
Reason	Weak market sentiment and low subscription risk

What changes have been introduced in Minimum Public Shareholding (MPS) rules?

SEBI has revised the Minimum Public Shareholding (MPS) framework to provide a more practical compliance timeline for large listed companies.

Market Cap Slab	Compliance Timeline
≥ ₹1600 crore	~3 years
₹1600 – ₹4000 crore	3–5 years
₹4000 – ₹50,000 crore	5–7 years
₹50,000 crore – ₹1 lakh crore	7–8 years
₹1 lakh – ₹5 lakh crore	8–9 years
> ₹5 lakh crore	Up to 10 years

What are SEBI rules for depository marking of lock-in securities?

SEBI has clarified that when technical systems are unable to create a lock-in on securities, depositories must classify them as “Non-transferable.”

Key points:

• If lock-in is not possible, mark securities as “Non-transferable”
• Transfer restrictions remain effective
• Applicable across depositories
• Strengthens investor protection and compliance

What are the new rules for Social Stock Exchange (SSE) and Impact Assessors?

SEBI has strengthened the Social Stock Exchange framework to improve transparency, accountability, and social impact reporting.

Key changes:

• Assessors must be NISM-certified
• Mandatory SEBI/SRO registration
• Minimum application size reduced from ₹2 lakh to ₹1000
• Minimum subscription requirement reduced from 75% to 50%
• NPO listing validity extended up to 3 years
• Introduction of zero coupon instruments

What is SEBI’s new FPI net settlement mechanism?

SEBI has introduced a net settlement framework for Foreign Portfolio Investors (FPIs) to improve efficiency in cross-border transactions.

Key provisions:

• Outright trades: Net settlement permitted
• Non-outright trades: Gross settlement mandatory
• No cross-security netting
• Individual trade-level settlement
• STT applicable on gross transaction value

What are changes for debenture trustees under SEBI rules?

SEBI has introduced structural reforms for debenture trustees to improve governance standards and eliminate conflicts of interest.

Requirement	Details
Separate Entity	Required for non-regulated activities
Objective	Avoid conflict of interest
Applicability	All debenture trustees
Deadline	Extended up to 27 October 2026

What is PARVA framework introduced by SEBI?

PARVA (Past Risk and Return Verification Agency) is a new framework introduced to verify performance claims made by investment advisers and research analysts.

Aspect	Details
Purpose	Verify past performance claims
Agency	CARE Ratings (interim)
Data Center	NSE
Deadline	Within 3 months (~3 Aug 2026)
Objective	Prevent misleading marketing claims

What is SEBI AIF fast-track mechanism?

SEBI has introduced a fast-track mechanism for Alternative Investment Funds (AIFs) to accelerate fundraising and deployment of capital.

Key provisions:

• Scheme launch permitted after 30 days of filing PPM
• First close must take place within 12 months
• Faster capital mobilization
• Improved regulatory efficiency and clarity

FAQs

What is InvIT borrowing limit under SEBI 2026 rules?

Under normal circumstances, InvITs can borrow up to 49% of their net assets. Borrowing beyond this limit is allowed only under specific SEBI-prescribed conditions.

Why was IRRA discontinued?

SEBI discontinued IRRA because stock exchanges now have stronger cybersecurity frameworks, backup systems, and real-time monitoring mechanisms.

What is the AUM threshold for significant index?

An index is classified as significant if the assets under management (AUM) linked to it exceed ₹20,000 crore during the evaluation period.

What is the MPS requirement in India?

Listed companies are required to maintain a minimum public shareholding (MPS) of 25%.

What is PARVA framework?

PARVA is a framework introduced by SEBI to verify past performance claims made by investment advisers and research analysts, thereby preventing misleading promotional claims.