SEBI introduces new informal guidance scheme, expands scope to market infrastructure institutions

The Securities and Exchange Board of India (SEBI) has notified a revamped Informal Guidance Scheme, 2025, replacing the two-decade-old framework introduced in 2003. The new scheme, effective December 1, 2025, broadens the category of entities that may seek regulatory clarity from the market regulator on the applicability of laws administered by it.

Also read: Trading in single stock derivatives may become costly as SEBI likely to remove calendar spread benefit

The earlier Informal Guidance Scheme, 2003 allowed eligible entities to request clarification from SEBI in the form of interpretive letters or no-action letters. In a no-action Letter, the Department may indicate whether it would or would not recommend any enforcement action to the Board under any Act, rules, regulations, guidelines, circulars, or other legal provisions administered by SEBI, in relation to a proposed transaction described in an application submitted under paragraph 8. The assurance applies only if the transaction is carried out exactly as proposed.

In an interpretive letter, the Department may provide an interpretation of a specific legal provision, including any Act, rule, regulation, guideline, circular, or other provision administered by SEBI, in the context of a proposed securities transaction or a specific factual situation presented by the applicant.